DA Hike up to 9%: Central govt employees’ dearness allowance hiked 3%, while states’ hikes much higher: 8th Pay Commission: Budget 2025

Centre likely to announce in Budget 2025; Check what employees and pensioners can expect as minimum basic salary.

The 7th Central Pay Commission recommendations were implemented from January 1, 2016. Every time a new pay commission is set up (usually every 10 years), the Centre merges the DA with the basic pay of employees and starts from 0 and hikes DA twice a year in January and July.

7th Pay Commission News: Central government employees finally got the good news on Wednesday on the dearness allowance front ahead of Diwali. The union cabinet approved a 3% raise in DA (dearness allowance) for central government employees and pensioners, bringing it to 53% of the basic pay.

In contrast, several states have given better DA hikes to their employees, with some increasing the key allowance by as much as 9%. So you must be wondering why there is so much disparity between states and centre in terms of DA hikes.

Central government employees are anxiously awaiting the announcement of the 8th Pay Commission, as it has been a trend for the Centre to announce a new pay commission every ten years. Employees had anticipated the announcement in the 2024 budget, but it did not happen.

The 7th Central Pay Commission recommendations were implemented from January 1, 2016. Every time a new pay commission is set up (usually every 10 years), the Centre merges the DA with the basic pay of employees and starts from 0 and hikes DA twice a year in January and July.

A few days ago, the Centre increased the Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners by 3%. Now, the DA has reached 53%. This hike is effective from July 1, 2024, and employees and pensioners will receive arrears for three months before Diwali.

If sources are to be believed, the Centre may make an announcement in the 2025 budget. A central leader stated that it would be appropriate to form a new pay commission after the budget speech. . The new pay commission will take time to present its recommendation reports to the government. The 7th Pay Commission took more than 18 months to prepare its report of recommendations.

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