DA Arrears for Central Government Employees: Payment Date, Expected Amount and More

The central government has approved a 2% hike in Dearness Allowance (DA) and Dearness Relief (DR) for government employees and pensioners. This decision, taken on March 28 in a cabinet meeting chaired by PM Narendra Modi, will benefit over 1 crore employees and pensioners. The new DA rate will be effective from January 1, 2025.

When Will Employees Receive DA Arrears?

The announcement of the DA hike was delayed this time. Usually, such increases are announced before Holi or Diwali. As a result, employees will not only receive the revised DA in their April 2025 salary but also receive arrears for the months of January, February, and March. This means that employees and pensioners will get 3 months’ worth of pending DA payments along with their April salary or pension.

Lowest DA Hike in 7 Years

This 2% DA hike is the lowest in the past 7 years. In previous years, DA was typically increased by 3% or 4%. The last increase, announced for the July-December 2024 period, raised DA from 50% to 53%. With the new hike, DA will now be 55%.

How Much Will Salary and Pension Increase?

Under the 7th Pay Commission, the minimum basic salary of a central government employee is ₹18,000. A 2% DA increase will result in an additional ₹360 per month. Over 3 months (January to March 2025), this amounts to ₹1,080 in arrears.

For pensioners receiving a minimum basic pension of ₹9,000, the arrears for 3 months will be ₹540. This amount will be added to their April 2025 pension.

First DA Hike After the 8th Pay Commission Announcement

This is the first DA hike following the announcement of the 8th Pay Commission on January 16, 2025. The commission is likely to submit its recommendations by 2026, which will determine future salary and pension increases for government employees and retirees.

What’s Next for Central Government Employees?

The government will declare the next DA hike for July-December 2025 around October-November this year. Once the 8th Pay Commission’s recommendations are implemented, DA will be reset to zero and included in the basic salary.

For now, the increased DA and three months’ arrears in April 2025 will provide financial relief to employees and pensioners. Meanwhile, the government is expected to announce the names of the members of the 8th Pay Commission soon. The commission’s report, which could take 15-18 months to prepare, will play an important role in deciding future salary and pension hikes.

Conclusion

The 2% DA hike and arrears will bring financial relief to employees and pensioners in April. With the 8th Pay Commission in progress, future salary hikes will be closely watched.

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