Reportedly, the DA hike with arrears is soon to be disbursed for employees and pensioners, as per the grapevine news in the corridors of the Central Government, which is really a great financial relief for them. The new review of the DA component, which comes under the 7th Pay Commission, is going on because now the blow is going high on the cost of living adjustments due to soaring inflation.
4% DA Hike Likely
From the current revisions, now the DA would likely rise by 4 percent in total, increasing DA from 50 percent to 54 percent. This will cover over 50 lakh employees working under the Central Government and nearly 65 lakh pensioners across the whole country. The numbers on which this increase is based are, of course, those released under CPI-IW by the Labour Ministry, since this Ministry plays the pivotal role in fixing the DA two times a year-January and July-for government employees and pensioners.
Payment Of Arrears From January 2025
Additionally, the government is likely to pay the arrears from January to the concerned month of approval so that employees and pensioners benefit fully from the revised rate. For example, if the hike is approved in May 2025, the arrears for the months of January, February, March, and April will be paid along with the regular salary or pension.
Effects On Salaries Amd Pensions
Employees with a base pay of ₹30,000 will earn an additional ₹1,200 per month for a 4% DA increase. When combined with four months of arrears, the overall windfall could amount to be ₹6,000 or more depending on basic pay. Pensioners would also benefit from the same increases based on their pension structure.
Further Benefits Possible
Other possible updates with this DA increase would include:
- Towards re-visit of fitment factor in the newly coming 8th Pay Commission
- Higher HRA in metros and towns
- Festival bonuses or performance-linked bonuses
To Be Announced Right Away
Though not officially named as such, sources claim that the announcement would possibly be made by mid-May 2025, just prior to the next budgetary discussions. The Finance Ministry is collating data, after which, they are expected to release the announcement.
Also Read:EPS Pension May 2025 Update: Will Minimum Pension Be RS 3,000, RS 7,500 Or RS 9,000