After the recent hike in dearness allowances (DA), the central government employees have now joined state government employees waiting for the big hike in salaries. The annual increase with a per capita amount of Rs 6120 is intended to ensure that the financial position is made comfortable in the time of inflation. The Central Government has given its approval to the two percent DA hike, thus making the new total 55 percent. Now, the same change is likely to happen for state employees, marking their development towards better financial stability.
First DA Revision of the Year 2025 Brings Some Benefit for Employees
The Dearness Allowance for central government employees is revised twice in a year, and it directly influences their take-home pay. As a result of this decision by the Centre, state governments are preparing to follow this revision in the near future. Lakhs of employees would soon have this salary hike as relief from the high cost of living.
Good News for Central and State Employees as Well as Pensioners
Indeed, the recent DA increase has benefited state employees alongside pensioners. Out of all the Indian states, Rajasthan would be the most affected, as almost 10.40 lakh employees and pensioners are expected to gain from this revision. According to speculations, the state government would give an effective 2% increase effective from January 1, 2025, which coincides with the central government’s decision.
To streamline the process, the increased amounts might be deposited directly to the General Provident Fund accounts of employees, while others could enjoy cash benefits. This would benefit 6.50 lakh serving employees along with more than 3.90 lakh pensioners while imposing an extra burden of Rs 820 crore on the state exchequer monthly (or Rs 9840 crore annually).
How Much Will DA Increase for State Employees?
The same kind of increase would also be extended to state employees, going to 53 percent to 55 percent, effective from January 1, 2025. This goes by the formula approved by the 7th Central Pay Commission, with a high possibility of announcing it during or around Ram Navami, which would come off as timely relief financially.
Salary Boost: Employees Will Get Up To Rs 6,120 Annually
For an employee whose basic pay is pegged at Rs 25,500, this 2 percent DA hike would amount to an annual benefit of Rs 6,120. Thus, benefiting from an increase of Rs 510 monthly, the dearness allowance would be increased from Rs 13,515 to Rs 14,025. Besides the salaries revised towards higher ranks, the employees would also be entitled to three months’ arrears.