Union Cabinet Approves 2% DA Hike For Central Government Employees - W.e.f January-2025

 

 

7th Pay Commission DA Hike: The Union Cabinet on Friday approved a 2% hike in Dearness Allowance (DA) for central government employees

7th Pay Commission DA Hike: The Union Cabinet on Friday approved a 2% hike in Dearness Allowance (DA) for central government employees, according to ET reports.

With this revision, Dearness Allowance (DA) will increase from 53% to 55%, providing a salary boost for government employees. The previous DA hike occurred in July 2024, when it was raised from 50% to 53%.

 

What is Dearness Allowance (DA)?

• DA is extra money that the government and public sector employers give to their employees and pensioners to help them cope with rising prices.
• It’s calculated as a percentage of the basic salary and gets revised every six months based on how much prices have gone up.
• There are two types—one for government employees and another for public sector workers.
• DA is taxable, so it has to be mentioned in income tax filings.