Ahead of the Indian festival of colours, the Narendra Modi government is likely to announce DA and DR hike for lakhs of central government employees and pensioners.
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The Dearness Allowance (DA) and Dearness Relief (DR) for employees and pensioners are likely to increase, as the central government is expected to declare it before Holi, say media reports.
DA and DR are anticipated to grow by 2 percent this time around while all eyes are glued to the official announcement from the central government. Serving government employees receive DA, while pensioners receive DR.
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.
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.
Consumer Price Index for Industrial Workers (2016=100) – December, 2024: The All-India CPI-IW for December, 2024 decreased by 0.8 point and stood at 143.7 (one hundred forty three point seven) as compared to 144 in November 2024.
The Labour Bureau, an attached office of the M/o Labour & Employment, has been compiling Consumer Price Index for Industrial Workers every month on the basis of retail prices collected from 317 markets spread over 88 industrially important centres in the country.
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