New Delhi, April 5, 2025 – Central government employees and pensioners have received a financial boost as the Union Cabinet, led by Prime Minister Narendra Modi, approved a 2% hike in Dearness Allowance (DA). The hike is applicable from January 1, 2025, and is expected to offer relief amid rising inflation and cost-of-living pressures.
The decision, finalized during the cabinet meeting on March 28, 2025, will benefit 48.6 lakh employees and 66.5 lakh pensioners across the country.
DA Arrears to be Paid with April Salary
With the hike now officially approved, the central government is likely to disburse DA arrears for January, February, and March along with the April 2025 salary. This means employees could receive a lump sum payment covering three months of arrears, enhancing their take-home pay significantly.
For example:
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If a central employee’s basic salary is ₹18,000, the 2% DA hike amounts to ₹360 per month.
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Over three months, this translates to ₹1,080 in arrears.
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For pensioners with a ₹9,000 basic pension, the monthly increase will be ₹180, totaling ₹540 in arrears.
This payout will not only boost morale but also provide a timely cushion against inflation. The government’s financial burden for this increase is estimated at ₹6,614.04 crore.
Who Is Eligible for the DA Hike?
All central government employees and pensioners, including those under:
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Central Public Sector Enterprises (CPSEs)
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Defence services
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Railways
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Employees governed by the 7th Pay Commission
…are eligible to receive this 2% DA hike, starting from January 1, 2025.
When Is the Next DA Hike Expected?
While employees celebrate this hike, the next adjustment in DA is expected in the second half of 2025, typically announced between October and November. The revised DA would then be applicable from July 1, 2025, based on changes in the All India Consumer Price Index (AICPI).
The government usually reviews DA twice a year, and the hike depends on inflation trends and overall economic conditions.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.