Modi Cabinet Announces DA Hike For Central Govt Employees; Check How Much Salary Will Increase, Arrear And Other Details

New Delhi: Much to market expectations, the Union Cabinet led by PM Narendra Modi announced the much awaited Dearness Allowance (DA) and Dearness Relief Hike for lakhs of central government employees

New Delhi: Much to market expectations, the Union Cabinet led by PM Narendra Modi on Friday (March 28) announced the much awaited Dearness Allowance (DA) and Dearness Relief Hike for lakhs of central government employees. The Modi government today announced hiked the dearness allowance by 2 percent, thus taking the DA from 53 percent to 52 percent.

DA Hiked To 55 Percent: Salary Arrears To Be Paid

Central government employees will get the hiked salary for the month of March along with  two months’ arrears i.e, for the month of January and February. Serving government employees receive DA, while pensioners receive DR.

DA Hiked To 55 Percent From 53 Percent: How Much Salary Will Increase

The 2 percent DA hike has been the lowest DA hike in the last 7 years. The 2 percent increase in DA will mark the lowest DA hike since July 2018. The last DA Hike was announced in October 2024. Union Cabinet approved a 3 percent Dearness Allowance (DA) increase for central government employees. A dearness allowance of 53 percent of basic pay is being provided to central government employees, as opposed to the previous 50 percent.

How Much Salary Will Increase?

The basic salary of the employee is Rs 18,000
Dearness Allowance Hiked To 55 Percent: Pay increase of Rs 360 more per month
New Dearness Allowance Annually: Rs 4,320 

Dearness Allowance (DA) hikes are based on the average All India Consumer Price Index (CPI-IW) for industrial workers, which reflects changes in the cost of living. 

The government announces a DA/DR hike twice a year. However, the announcements are made in March and September. The hike is applied retroactively every year between January and July.