Holi Gift to Central Government Employees: DA, DR Hike Likely, 1.2 Crore to Benefit

The Union Cabinet will announce the increase in dearness allowance (DA) and dearness relief (DR) for central government staff and pensioners today, March 12, 2025. It is being done to bring relief against inflation and will help some 1.2 crore staff and pensioners.

As per media inputs, the increase in DA/DR is anticipated to be done in the following meeting of the Union Cabinet, where it is convened to be held today. The increase will likely be 2-4% and some analysts have predicted that it will grow by 3-4%.

If the DA is raised by 2%, the minimum basic pay of central government employees will increase by Rs 360, bringing the total pay to Rs 27,900. If the DA is raised by 3%, the minimum basic pay will increase by Rs 540, bringing the total pay to Rs 28,080. If the DA is raised by 4%, the minimum basic pay will increase by Rs 720, bringing the total pay to Rs 28,260.

Parallel to this, if the DR is raised by 2%, the minimum basic pension of central government pensioners will go up by Rs 180, making the total pension Rs 13,950. If the DR is raised by 3%, the minimum basic pension will go up by Rs 270, making the total pension Rs 14,040. If the DR is raised by 4%, the minimum basic pension will go up by Rs 360, making the total pension Rs 14,130.

The DA/DR increase will translate into a burden of approximately Rs 15,000 crore on the exchequer for January and February of FY24. The increase will be implemented from January 1, 2025, and arrears will be given for the period from January to March.

The central government staff and pensioners are remunerated under the 7th Pay Commission, which advises the pay and pension system for central government staff. The increase in DA/DR is announced every six months, in January and July, to ease inflationary relief.

The Union Cabinet's move to raise the DA/DR is likely to put smiles on the faces of central government staff and pensioners before the Holi festival.

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