New Delhi, March 27: Over one crore central government employees and pensioners are eagerly awaiting the government’s decision on the much-anticipated hike in Dearness Allowance (DA) and Dearness Relief (DR) on basis of 7th Pay Commission. Traditionally announced before Holi, the DA hike was delayed this year, causing widespread speculation. Earlier reports suggested that the Cabinet might approve the increase on March 19, but the meeting did not take place.

Now, sources indicate that the decision is in its final stages and could be announced in the upcoming Cabinet meeting. 7th Pay Commission vs 8th Pay Commission: What is the salary difference under 7th and 8th CPC?

Why the Delay?

According to media reports, financial and procedural approvals were not completed in time, leading to the postponement of the DA announcement. If these formalities had been cleared earlier, the hike could have been confirmed before Holi on 7th Pay Commission recommendation. However, sources suggest that the approval process is nearly complete, and an official decision is expected soon. 7th Pay Commission: When Can Govt Employees Expect DA Hike Announcement? Check Latest Update.

What is DA, DR and Who Gets It?

Dearness Allowance (DA) is a cost-of-living adjustment given to central government employees and pensioners to help offset inflation on basis of 7th Pay Commission. It is revised twice a year, in January (before Holi) and July (before Diwali). While private sector employees do not receive DA, public sector undertaking (PSU) employees do.

Expected DA Hike

Based on the All India Consumer Price Index (AICPI) data from July-December 2024, the DA is likely to rise by 2%, increasing from 53% to 55%. However, some analysts predict a 4% hike due to rising inflation, which could push the DA to 57%. The final decision may be influenced by the Reserve Bank of India’s revised inflation forecast, which increased from 4.5% to 4.8%.

If approved, the revised DA will take effect from January 2025, with employees receiving arrears for January, February, and March along with their April salary.

(The above story first appeared on LatestLY on Mar 27, 2025 06:09 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).