2% DA Hike from January 2025
The Union Cabinet, led by Prime Minister Narendra Modi, has approved the release of an additional instalment of Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners, effective from January 1, 2025. This revision represents a 2% increase, raising the DA/DR rate from 53% to 55% of the Basic Pay/Pension to mitigate the impact of inflation.
This decision will benefit approximately 48.66 lakh Central Government employees and 66.55 lakh pensioners, with an estimated financial impact of ₹6,614.04 crore per year on the exchequer.
The DA hike follows the standard calculation formula recommended by the 7th Central Pay Commission, ensuring fair compensation for government employees and pensioners against rising living costs.
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