BIG BONUS FOR GOVERNMENT EMPLOYEES: Dearness Allowance Hiked to 55%!

New Delhi (The Uttam Hindu): In a move that will bring cheer to over 1 crore central government employees, the dearness allowance (DA) has been increased to 55% from the previous 53%. This 2% hike comes after a long-standing demand for a 3% increase. The central government employees had been eagerly awaiting this decision which will significantly impact their monthly salaries. The DA hike is expected to bring a substantial increase in the take-home pay of employees across various grades.

According to government data, the DA is typically increased by 3-4% every six months. The last DA hike was in July 2024, when it was increased from 50% to 53%. This time, however, the government has opted for a 2% increase. The increased DA will be effective from January 1, 2025 and employees can expect to receive arrears for the months of January and February along with their increased March salary.

It's worth noting that during the Covid-19 pandemic, the government had stopped the DA of all employees for 18 months, from January 2020 to June 2021. The employees have been demanding arrears for this period for a long time. The government increases the DA twice every year, once for January to June and the second time for July to December. This increase is based on the Consumer Price Index (CPI) and is aimed at helping employees cope with the rising cost of living.