Mumbai, March 10: Central government employees under 7th Pay Commission who are eagerly awaiting Dearness Allowance (DA) and Dearness Relief (DR) hike are expected to receive good news soon. According to reports, the Narendra Modi-led government is likely to announce DA and DR hike this week, most probably before the festival of Holi. If reports are to be believed, the Central government could announce a 2 per cent hike in Dearness Allowance (DA) and Dearness Relief (DR). However, an official announcement is awaited.

If approved, the 2 percent DA hike will benefit over 1.2 crore central government employees and pensioners under the 7th pay commission. Additionally, it will raise the current dearness allowance from 53 per cent to 55 per cent. Having said that, the final decision regarding the DA hike rests with the Union Cabinet led by Prime Minister Narendra Modi. It must be noted that DA is given to government employees while DR is given to pensioners. 8th Pay Commission: Central Govt To Remove Number of Allowances Applicable to Employees, Pensioners? Check Details.

Centre To Announce 2% DA Hike?

Every year, the Central government revises DA and DR twice - first in January and the second time in July. Dearness allowance hike is linked to inflation trends and the All India Consumer Price Index (AICPI). The last DA hike was in October 2024, where the dearness allowance was raised by 3 per cent. However, this time DA hike is likely to be 2 per cent although a few reports claimed it could go up to 3 per cent.

As per trends, the Centre announces January DA hike around Holi and the July DA hike before Diwali. As the Union Cabinet meetings are held on Wednesdays, there is a strong possibility that the dearness allowance hike is likely to be discussed in the upcoming meeting. Speaking about DA hike, Rupak Sarkar, president of the Confederation of Central Government Employees and Workers, said that the dearness allowance raise is likely to be announced in the next meeting. 8th Pay Commission: How Much Salary Hike Can Central Government Employees Expect? All You Need To Know.

How Much DA Hike Did Central Govt Employees Receive in March 2024?

Last year before Holi, the Union Cabinet had approved a DA hike of four per cent which raised dearness allowance from 46 per cent to 50 per cent. This was later increased by three per cent in October, thereby taking the DA and DR hike to 53 per cent under the 7th Pay Commission. The DA hike came into effect from July 1, 2024. Besides DA and DR hike, the Centre also announced plans for the formation of the 8th Pay Commission in January this year. A panel for its implementation is likely to be set up soon.

(The above story first appeared on LatestLY on Mar 10, 2025 04:05 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).