7th Pay Commission: The Union Cabinet has approved a hike of 2% in Dearness Allowance (DA) and Dearness Relief (DR) for the central government employees and pensioners on Friday. With this hike, the DA/DR for the central government employees and pensioners now stands at 55%. The hike in DA/DR was long awaited. Likewise, this news came as a sign of relief 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. Moreover, arrears will be paid to cover the period from January to March.
The increase in DA and DR is aimed at providing relief from inflation. Accordingly, the DA/DR is hiked twice a year. The first increase comes 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.
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. In October last year, the government increased DA/DR by 3% to 53%.
7th Pay Commission DA Hike: New Minimum Salary And Pension
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 minimum salary. At 55% DA, he/she will be paid Rs 27,900.
Meanwhile, currently, minimum basic pension is Rs 9,000. At 2% DR increase, pensioners minimum pension will rise by Rs 180. Now, he/she will be paid Rs 13,950 as minimum pension.
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