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Modi Government Approves 2% DA Hike

New DA Hike Approved: Key Highlights

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a 2% dearness allowance (DA) hike, increasing it from 53% to 55% for central government employees and pensioners. Effective January 1, 2025, this decision will benefit over 1.15 crore people and cost the government ₹6614.04 crore annually.

This increase aligns with the 7th Central Pay Commission recommendations and aims to offset inflationary pressures government employees and pensioners face.

What is Dearness Allowance (DA)?

DA is an essential component of government salaries and pensions, designed to counteract inflation and ensure that employees' purchasing power remains stable. It is revised twice a year, in January and July, based on the All India Consumer Price Index (AICPI) for Industrial Workers.

Latest DA Hike: Quick Facts

  • DA/DR Increased: From 53% to 55%

  • Effective Date: January 1, 2025

  • Beneficiaries: Over 1.15 crore employees and pensioners

  • Financial Impact: ₹6614.04 crore annually

  • Last DA Hike: July 2024 (from 50% to 53%)

  • The basis for Hike: 7th Central Pay Commission recommendations

Why the DA Hike Matters?

  • Financial Relief for Employees & Pensioners – A higher DA means increased take-home salary and pension benefits.
  • Inflation Adjustment – Helps counter rising prices, ensuring that government employees maintain their standard of living.
  • Boost to the Economy—Increased DA results in higher consumer spending, indirectly benefiting various sectors.
  • Timely Revision – Ensures salaries and pensions are adjusted regularly to market conditions.

Government's Commitment to Employee Welfare

The Modi government has consistently prioritized financial security for central government employees and pensioners. The DA hike is part of a broader effort to support government workers amidst economic fluctuations.

Historical DA Hike Trends

Year DA % ( Effective Date)

Jan 2023

42%

Jul 2023

46%

Jan 2024

50%

Jul 2024

53%

Jan 2025

55% (New Hike)

Conclusion

The 2% DA hike is a welcome move for central government employees and pensioners, reinforcing financial stability amid rising living costs. With this revision, the government continues to ensure fair wages and economic support for public sector workers.

For more updates on government salary revisions, DA hikes, and financial policies, stay tuned to the latest news!

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