Union Cabinet Clears 2% DA Hike for the Central Government Employees.
To increase 2% of Dearness Allowance (DA) Hike for the Central Government Employees was approved by the Union Cabinet, raising it from 53% to 55%, on Friday.
On Friday, a Union Cabinet agrees to increase the Dearness Allowance (DA) hike by 2% for Central Government Employees. Union Minister Ashwini Vaishnaw said that the raise of DA by 2% is effective from January 1, 2025. By 2% Dearness Allowance (DA) will be increased from 53% to 55%, including salary hikes for employees in advance for the coming 8th Pay Commission.
To help the Central Government Employees cope, DA was announced bi-annually with the rising inflation. The last Hike was announced on July 2024, when DA rose from 50% to 53% and the recent one was on Friday, when the DA raised by 53% to 55%. DA for Central Government Employees is a basic salary for their work. For example, if the basic salary of the employees is Rs 1 lakh, and the DA of 55% by increase of two percent, the equal will be Rs 55,000.
DA Hike: What is Dearness Allowance (DA)?
The DA is a dearness allowance, which is an amount paid to government employees to regulate their basic salaries to raise inflation. The basic salaries are planned in the pay commission every 10 years, but the DA confirms a periodic ruse to the employee’s salaries. The DA is increased by the government twice a year. The DA is calculated as per the All India Consumer Price Index (Industrial Workers); reading is done for January to December. The union cabinet approves only for the central government employees. They do not calculate other allowances in dearness allowance, like house rent allowance and traveling allowance. The union cabinet concludes that the exchequer on the account of an increase in both Dearness Allowance and Dearness Relief would be Rs. 6614.04 crores per annum. This increase is based on the recommendations of the 7th Central Pay Commission.
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