DA Hike 2025:
The Central Government has given a special Dussehra gift to its employees and pensioners by announcing a hike in Dearness Allowance (DA). The government has decided to increase DA by 3%, bringing big relief to those who have been waiting for this revision for a long time. With this hike, more than 1 crore employees and pensioners will benefit across the country.
Dearness Allowance (DA), also called “Karuvu Bhatyam” in Telugu, is an amount paid by the government to employees and pensioners to balance the rising cost of living. The government usually revises DA twice every year – once for the period of January to June, and the second for July to December. Now, the second DA hike for 2025 has been announced.
The DA rate has now been increased from 55% to 58%. Earlier, DA hikes were limited to 2%, but this time the government has approved a 3% hike. This step is expected to give a significant financial boost to families dependent on government salaries and pensions.
The hike will benefit about 49.2 lakh Central Government employees and 68.7 lakh pensioners. However, this increase will also bring an additional financial burden of around ₹10,084 crore annually on the government. The new DA rate will be calculated from July 1, 2025.
To understand the impact, let’s take the case of an employee earning a minimum basic salary of ₹18,000 under the 7th Pay Commission:
Basic Salary: ₹18,000
Additional 3% DA: ₹540 per month
Total DA (58% of basic): ₹10,440
New Gross Salary = ₹18,000 + ₹10,440 = ₹28,440
This means an employee with ₹18,000 basic pay will now receive an additional ₹540 per month due to the hike.
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