New Delhi, March 22: Central government employees and pensioners may soon receive an update on their Dearness Allowance (DA) and Dearness Relief (DR) hike on 7th Pay Commission recommendations. The Union Cabinet is expected to finalize the decision, and if approved, the revised DA will be implemented from January 2025. Employees could see the hike reflected in their March salary along with two months’ arrears.

However, this year’s hike might disappoint employees, as reports suggest only a 2% increase— the lowest in seven years. Since July 2018, DA hikes have typically ranged between 3% and 4%. The All India Consumer Price Index (AICPI) data indicates a lower adjustment this time, leading to dissatisfaction among employees. 7th Pay Commission: When Can Govt Employees Expect DA Hike Announcement? Check Latest Update.

During the COVID-19 pandemic, the government had frozen DA hikes for 18 months (January 2020 to June 2021), and employee unions have since been demanding compensation. Traditionally, DA hikes occur twice a year: once in March (for January-June) and again in October-November (for July-December). 7th Pay Commission January DA Hike: AICPI-IW Index Drops 0.5 Points Ahead of Anticipated Hike in Dearness Allowance for Central Government Employees, Here's What It Means.

Since the 7th Pay Commission’s implementation in January 2016, DA has been revised twice a year, except during the pandemic. The last revision in October 2024 increased DA to 53%. If the proposed 2% hike is approved, it will be the lowest since July 2018.

This hike is significant as it follows the announcement of the 8th Pay Commission in January 2025, whose recommendations will be implemented from January 2026. Until then, only one more DA hike is expected later this year.

With over one crore central employees and pensioners awaiting the decision, all eyes are on the government to see if the final hike exceeds 2%.

(The above story first appeared on LatestLY on Mar 22, 2025 07:35 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).