The Union Cabinet’s decision, taken recently, has triggered an increase in Dearness Allowances (DA) and Dearness Relief (DR) for central government employees and pensioners by 2% for the year 2025. Thus, the present situation elevates DA from 53% to 55% of basic pay or pension.
Effect on Salary and Pension
For instance, a person whose basic pay is ₹18000 will see a 2% increment give an additional sum of ₹360 increased to ₹1,080 total up to March 2025 and adjusted against the salary for April. So, an individual with a basic pension of ₹9,000 would, therefore, see an increment of ₹180 monthly, while his/her total arrears would amount to ₹540 for the same period.
Implementation Formalities
The Department of Expenditure issued an Office Memorandum on April 2, 2025 to formalise the changes undertaken in DA. The newly attached rates shall be applicable to all central government civilian employees under the 7th Central Pay Commission (CPC).
Inter-State Differences
In addition, the Assam government declared about 2% DA increase to its employees in furtherance to the decision of the central government. This will have part of the increased DA as part of salaries rolled out before Bihu while arrears for January and February 2025 will be paid in April and May respectively.
The Future Chronicle
Discussions are on for the establishment of the 8th Pay Commission which shall succeed the 7th Pay Commission whose term ends in December 2025. The government is likely to announce soon the members of the commission, who will play a crucial part in working out the future pay structure and allowances of government employees.
The above narration promises to be one such future endeavor for the employees as well as themselves. For lighting the way for future planning and budgeting, such changes will affect these topics significantly.
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