Mumbai, March 17: Central government employees and pensioners are eagerly awaiting news of a Dearness Allowance (DA) hike in line with 7th Pay Commission, which is expected to help them cope with rising inflation. Reports indicate that the government may approve a 2% increase, raising the DA from 53% to 55% of basic pay in the coming weeks under the 7th Pay Commission.

Dearness Allowance, or DA, is a crucial component of government employees' and pensioners' income. It serves as a cost-of-living adjustment that helps mitigate the impact of inflation. The allowance, which is announced twice a year (in January and July), directly affects the take-home salaries of central government employees and pensioners based on the current inflation rate. 7th Pay Commission January DA Hike: Centre To Raise Dearness Allowance of Government Employees in Coming Week? Know How Much DA Hike Is Expected.

DA Hike's Impact on Salaries:

A 2% DA hike would increase the monthly salary of an entry-level government employee with a basic pay of INR 18,000 by INR 360, effective from January 1, 2025. For example, an employee currently receiving INR 9,540 as DA (53% of their basic pay) would see their DA rise to INR 9,900 with the 2% hike. A 3% increase, however, would result in an INR 540 raise, bringing their DA to INR 10,080.

How Much DA Was Raised in Previous Hike?

The last DA hike, effective from July 1, 2024, saw a 3% increase, raising the DA from 50% to 53% of basic pay. Pensioners also benefited from a similar increase in their dearness relief. 8th Pay Commission: Central Govt Employee To Get Minimum 5 Promotion During Their Service Period? Check Latest Update.

In addition to the DA adjustment, PM Narendra Modi-led Indian government has set up the 8th Pay Commission to discuss potential increases in the basic pay of government employees, which will come into effect from January 2026.

(The above story first appeared on LatestLY on Mar 17, 2025 12:14 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).