In a significant decision, the central government approved a 3% Dearness Allowance (DA) for its employees covered under the 7th Pay Commission. This will be a “good token” for millions of government employees and pensioners-who may find it just a little easier to survive now.
What Is Dearness Allowance(D.A.)?
DA is just a name for some allowance meant for government employees and retirees, extra to take care of inflation and cost of living considerations. Generally, the government is found to be on an experimental mode, with effective DA reviews in January and July, as per the decision of these two months against the All India Consumer Price Index(AICPI).
Details About 3% Increment In DA
- Effective Date: This new DA will come into force from january 1, 2025.
- New Rate of DA: DA Rate for Central Government Employees will be increased by further 3% to raise the total from 53% to 56%.
- Beneficiaries: Nearly around 47.5 lakh Central government employees will share this benefit with around 68.6 lakh pensioners.
- Arrears Payment: All current pending dues of DA for January, February, and March will be cleared along with the next month’s compensation.
Fates For The Pensioners
Interestingly, they have enjoyed all the adjustment of 3% militant DRAs, which will greatly enhance their financial coverage in regard to pension income by those few increases.
Conclusion
An entirely welcomed move of 7th Pay Commission DA hike for him and his fraternity against rising inflation for government employees and pensioners. All the above would increase their disposable income and add some strength to their financial stability. Some of the employees may see the effect of the new DA amounts in their immediate salaries payable next onwards as arrears for the next three months.
So keep tracking her notification channels from the Ministry of Finance for more e-updates.
Also Read: Salary Hike And Bonus For Central Employees In 2025? Check New Rules