7th Pay Commission: The Union Cabinet on Friday approved a 2% hike in Dearness Allowance (DA) and Dearness Relief (DR). With the latest raise, the DA/DR for the central government employees and pensioners now stands at 55%. The central government employees and pensioners waited quite too long for this hike. Likewise, this news came as a big bonanza for about 48.66 lakh central government employees and 66.55 lakhs pensioners.
“The Union approved to release of an additional instalment of DA to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.01.2025 representing an increase of 2% over the existing rate of 53% of the Basic Pay/Pension, to compensate against price rise,” read the official statement. Accordingly, the central government will pay the arrears to cover the period from January to March.
The increase in DA/DR is aimed at providing relief from inflation. Likewise, the DA/DR is hiked twice a year. The first increase coming into effect from January 1 and the another one is effective from July 1. Currently, the central government employees and pensioners are paid under the 7th Pay Commission. In October last year, the government hiked DA/DR by 3% to 53%.
7th Pay Commission: What Will Be The New Minimum Salary?
Under 7th Pay Commission, central government employees receive Rs 18,000 as minimum basic pay. Meanwhile, central government pensioners get Rs 9,000 as minimum basic pension.
At 2% hike, now the DA stands at 55%. If an individual has the current minimum basic salary of Rs 18,000, DA increase of 2% would translate into the increase of Rs 360 in his/her salary. Therefore, they will be paid Rs 27,900 per month, which comprises minimum basic salary and the DA.
DR too now stands at 55% with the latest increase. If an individual has the current minimum basic pension of Rs 9,000, DR increase of 2% would translate into the increase of Rs 180 in his/her pension. Therefore, they will be paid Rs 13,950 per month, which comprises minimum basic pension and the DR.
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