Most importantly, before the forthcoming celebrations of Holi 2025, the Central Government approved a huge Dearness Allowance (DA) hike for its employees. So, government employees and pensioners will get a beautiful gift in the form of added benefits to their salaries and pensions, which will assist them in fighting the increasing inflation and bettering employees’ lives.
DA Hike 2025: How Much More Is Expected?
As per reports, government has raised Dearness Allowance (DA) by 4% from current rate making DA amount 50% of the basic salary. This would cover central government employees and pensioners.
- Before the increase, DA was already at 46% of basic salary.
- Now, it has increased by 4%. The present DA rates stand at 50%.
- It will be applicable to over **47 lakh employees of the central government and 68 lakh pensioners.**
- January 1, 2025, will mark the beginning of the increase with actual payment expected soon.
Effect Of DA Hike On Salaries And Pensions
All these DA hikes will directly affect the take-home salary of all government employees. A breakdown of how the different salary brackets will be affected:
- An employee with a basic salary of ₹18,000 will be getting an extra ₹720 on the salary due to this DA increase.
- Likewise, employees on a basic salary of ₹50,000 will be getting an increase of ₹2,000 per month.
- Employees with a basic salary of ₹1,00,000 will be getting an increase in their salary by ₹4,000 more per month.
Likewise, this will also increase the amount of pension being given to the pensioners, hence **increasing their post-retirement** income.
Other Advantages With The DA Increase
As the DA goes beyond 50%, many other allowances which are DA-linked also get a boost, like:
- House Rent Allowance (HRA)
- Travel Allowance (TA)
- Gratuity and other retirement grants
This makes the DA increase even more lucrative for the concerned employees, as it will begin contributing to an overall increment in the salary components.
Conclusion
The long-awaited respite for the central government employees and even for pensioners is the 4% DA hike just a few days before Holi 2025, allowing them to generate enough money to ride inflation and enjoy the holiday season. With other allowances about to rise together with DA, it spells good earnings and a smooth economic journey for all government employees in India.
Also Read: DA Hike 2025: Good News For Employees, Salary And Pension Will Increase By This Much