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7th Pay Commission DA Hike: The Union Cabinet on Friday approved a 2% hike in Dearness Allowance (DA) for central government employees
DA Hike
7th Pay Commission DA Hike: The Union Cabinet, headed by Prime Minister Narendra Modi, on Friday approved a 2 per cent DA hike. The announcement was made by Union Minister Ashwini Vaishnaw.
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 is a cost-of-living adjustment granted to government employees to help offset the impact of inflation. It ensures that salaries retain their purchasing power despite rising expenses. While basic salaries are determined by the Pay Commission every 10 years, DA is revised periodically to align with inflation trends.
When does the government increase DA?
The government increases DA twice a year. The announcement may be late, but the DA rate is calculated as per the All India Consumer Price Index (Industrial Workers) reading for January and December.
What is AICPA (IW) Index?
It is an index taken as a benchmark to calculate DA for central government employees. Governed by the Labour Bureau of the Ministry of Finance, the index issues monthly readings of DA for Centre and states.
Can DA also be increased for state government employees?
The Cabinet approves DA only for central government employees. States mostly follow suit. However, they may not follow it or may increase DA out of turn.
