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DA Hike Latest Update: Cabinet may raise dearness allowance by 2% today; know how it impact your basic salaries of Rs 24,600, Rs 37,500, Rs 54,300, and Rs 71,700
Written By ZeeBiz WebTeam
Reported By Ambarish Pandey
Published: | Updated:
DA Hike Latest Update for 7th Pay Commission: The Cabinet can give the go-ahead to a 2 per cent increase in dearness allowance (DA) for central government employees in a meeting today (March 28, 2025). It can be a much-awaited rise from DA's current rate of 53 per cent to 55 per cent. Know how it may impact your total salary if your current basic pay is Rs 24,600, Rs 37,500, Rs 54,300, or Rs 71,700.
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Dearness allowance is given to government employees to adjust their salaries to the rising inflation. Photo: Pixabay/Representational
DA Hike Latest Update 7th CPC: Central government employees have been long waiting for a rise in their dearness allowance (DA). Their long wait may end today as Centre may give its go-ahead to a 2 per cent DA hike in a cabinet meeting today (March 28, 2025). With it, the DA can rise from its current rate of 53 per cent 55 per cent. It may impact central government employees' salaries significantly ahead of the formation of the 8th Pay Commission. The DA was last increased in July 2024, when it was raised to its current rate of 53 per cent from 50 per cent.
What is dearness allowance (DA) for government employees?
Dearness allowance is an amount given to government employees to adjust their basic salaries to rising inflation. The basic salaries are decided in a pay commission after every 10 years, but DA ensures a periodic rise to the employees' salaries.
When does government increase DA?
The government increases DA twice a year. The announcement may be late, but the DA rate is calculated as per the All India Consumer Price Index (Industrial Workers) reading for January and December.
What is AICPA (IW) Index?
It is an index taken as a benchmark to calculate DA for central government employees. Governed by the Labour Bureau of the Ministry of Finance, the index issues monthly readings of DA for Centre and states.
Can DA also be increased for state government employees?
The Cabinet approves DA only for central government employees. States mostly follow suit. However, they may not follow it or may increase DA out of turn.
Total salary on Rs 24,600 basic pay (at 53% and 55% DA)
We are not calculating any other allowances such as house rent allowance (HRA) and travelling allowance (TA). These are projections as actual calculations may vary.
| Basic pay | ₹ 24,600 |
| DA at 53% | ₹ 13,038 |
| Total pay | ₹ 37,638 |
| DA at 55% | ₹ 13,530 |
| Projected revised salary | ₹ 38,130 |
Total salary on Rs 37,500 basic pay (at 53% and 55% DA)
| Basic pay | ₹ 37,500 |
| DA at 53% | ₹ 19,875 |
| Total pay | ₹ 57,375 |
| DA at 55% | ₹ 20,625 |
| Projected revised salary | ₹ 58,125 |
Total salary on Rs 54,300 basic pay (at 53% and 55% DA)
| Basic pay | ₹ 54,300 |
| DA at 53% | ₹ 28,779 |
| Total pay | ₹ 83,079 |
| DA at 55% | ₹ 29,865 |
| Projected revised salary | ₹ 84,165 |
Total salary on Rs 71,700 basic pay (at 53% and 55% DA)
| Basic pay | ₹ 71,700 |
| DA at 53% | ₹ 38,001 |
| Total pay | ₹ 1,09,701 |
| DA at 55% | ₹ 39,435 |
| Projected revised salary | ₹ 1,11,135 |
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