The Central government employees and pensioners have a reason to rejoice the aforementioned announcement of DA and DR hike by 2% made by the Union Cabinet, which shall enhance DA/DR from 53% to 55% of the basic pay and pension. The said increase is due to come into effect on January 1, 2025, in other words, to address the inflation-related burden on pay and pensions.
Payment Of Arrears
Payment of arrears to employees and pensioners will be done for the months of January, February, and March 2025. Arrears will be paid along with the salary/pension for the month of April.
Financial Implications
This 2% increase in DA gives ₹360 to employees with the lowest level of pay starting at ₹18,000 on a monthly basis, thus for three months, the total amount of arrears is ₹1,080. Pensioners with a basic pension of ₹9,000 will get an increase of ₹180 per month, leading to total arrears of ₹540.
Impact On Employees And Pensioners
About 4.86 million central government employees and 6.65 million pensioners are covered under this revision. Normally the government keeps on altering the rates of DA and DR to maintain the real value of earnings against the onslaught of inflation.
Conclusion
Timely disbursement of DA arrears would now come as a relief to central government employees and pensioners with their salary and pension payments due in April, considering the soaring expenses. Beneficiaries are then expected to preview the accounts from which payment would be effected and plan accordingly.
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