Bad News for Central Government employees and pensioners
Yes this is bad news for Central Government employee and Pensioners, if you will asked to me. Why I am telling bad news? I will explain each and every thing.
First of all, I want to inform you that the government has approved a 2% increase in Dearness Allowance (DA), which will be effective from January 1, 2025. This DA hike is provided under the 7th Pay Commission.
With this increase, DA will rise from 53% to 55%. The hike in DA will provide financial support to employees and pensioners.
The increased DA will benefit approximately 48.66 lakh central government employees and around 66.55 lakh pensioners.
Central Government employees and pensioners are waiting from January 2025 for Dearness Allowance and now finally Government has given DA only 2%. Last DA in July 2025, 3% increased by the Government and this time only 2% only, so this loss for all employee and pensioners.
What is Dearness Allowance?
Dearness Allowance is a cost of living adjustment that providing to the employs and pensioners. Dearness Allowance giving to the employees and pensioners to help them manage increasing expense due to inflation.
All you know Government revised Dearness Allowance twice a year (January and July).
How Much Salary Will Get?
Previously Central Government Employees and Pensioners getting 53% DA, according to this DA if Basic salary is 18000 then DA amount is 9540 so total salary Rs. 27540 (Excluding others allowances). Now DA is 55% and the new salary will be Rs. 27900 (Excluding others allowances).
7th Pay Commission
Currently all central government employees and pensioners getting salary under 7th pay commission. For you information I want to tell you that 7th pay commission going to end in 31 December 2025, then after new commission will come i.e. 8th pay commission. 7th pay commission was implemented in March 2016 and it was effected from 01 January 2016. Central Government revise pay structure of the employees and pensioners in every 10 years.
Will DA Merge?
The news is already in the market regarding the merger of DA, but government has not given positive sign to merge DA in basic salary. There is a rule in 7th pay commission, if DA reached or increase above 50% then DA will merger in the basic salary and now DA is 55% and employee and pensioners demanding for merger of DA in basic salary. For you information I want to tell you that its happened in previous pay commission. In 6th pay commission when DA reached 50% then Government merge 50% DA in basic salary.
Nut for your information I want to tell you that if government merge DA in basic salary, then employee and pensioners will not get much benefit, overall salary will be same and also 8th pay commission going to implement so automatic DA will be zero.
8th Pay Commission
In January Union minister has approved for the implementation of 8th pay commission. But after the news of implementation till no any updates come from the government. Currently employees and pensioners getting salary under the 7th pay commission and also all benefit getting under the 7th pay commission.
Under the 7th pay commission minimum basic salary of employees is Rs. 18000/month and current DA after revision 55% of the basic salary.
7th pay commission id going to end in 31 December 2025, so there is chance to implement 8th pay commission on time. But how much salary will increase in 8th pay commission, it is not clear yet. Any news will regarding the 8th pay commission then I will update you.