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The Indian government is likely to give some positive news to its employees and pensioners ahead of Holi. Sources indicate that a hike in Dearness Allowance (DA) and Dearness Relief (DR) is on the anvil. It will be a boon if so, for more than 1.2 crore central government employees and pensioners, which will provide a much-needed relief amidst inflation.
The government calculates DA every six months in January and July. The January hike is usually announced in March, the month of Holi, while in July it is usually announced in October or November during the month of Diwali. This year, the government was expected to declare the DA hike prior to Holi on March 14, 2025. No mention of this was made during the cabinet meeting on March 5, 2025, and thus there were rumors of a probable delay in the declaration of the hike.
In 2024, on March 4, the cabinet sanctioned a DA increase that increased the rate to 50% from 46% of basic pay. Another rise was sanctioned in October 2024, taking the DA rate to 53%, effective from July 1, 2024. These rises gave employees economic security and assisted them in meeting inflationary pressures.
8th Pay Commission and Future Expectations
In January 2025, the government announced that they were establishing the 8th Pay Commission to deliberate on the increment of allowance and salaries for central staff. The commission would make recommendations by next January. Experts estimate that it would take them about one year to wrap up in proposals with negotiations from employees' unions and representatives on how to efficiently respond to their issues effectively.
The chance of a DA increase prior to Holi has provided the central government employees with hope. Although there has been no confirmation yet, it would translate into doubling their celebrations and improved finance. On top of that, there are whispers about the 8th Pay Commission suggesting a major change in the near future. Everyone now waits with bated breath for the government's next step.
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