The government has finalized a Dearness Allowance (DA) hike, bringing big relief to central employees. A salary increase of Rs 6480 has been approved. This decision benefits 1.15 crore employees and pensioners.
DA Hike Finalized
The new DA increase will take effect from January 1, 2025, and employees will receive arrears for the pending months.
Cabinet Decision on DA & DR
The cabinet met under PM Modi’s leadership and approved a 3% increase in both Dearness Allowance (DA) and Dearness Relief (DR). This was based on the All India Consumer Price Index (AICPI).
Dearness Allowance Hike Over the Years
| Year | DA Increase | Previous DA | New DA |
| 2024 | 3% | 50% | 53% |
| 2023 | 4% | 46% | 50% |
| 2022 | 3% | 42% | 46% |
Delay in DA Announcement
Employees expected the DA hike before Holi, but the announcement was delayed. Now, the revision is finalized, bringing relief to government employees.
Biannual DA Revision
The government revises DA twice a year:
- January 1
- July 1
However, the official announcement usually comes later, and arrears for the pending months are paid accordingly.
Impact on Salary
With a 3% hike, the basic minimum salary will increase:
| Basic Salary (Rs) | Monthly Increase (Rs) | Annual Increase (Rs) |
| 18,000 | 540 | 6,480 |
| 25,000 | 750 | 9,000 |
| 50,000 | 1,500 | 18,000 |
FAQs
When will the new DA hike be effective?
From January 1, 2025, with arrears paid later.
How much is the DA increase this year?
A 3% hike, raising DA from 53% to 56%.
How often is DA revised?
Twice a year, in January and July.
What is the salary impact of this DA hike?
A minimum salary increase of Rs 6480 annually
What was the last DA hike?
October 2024, when DA increased by 3% from 50% to 53%.