Dearness allowance (DA) hike for central authorities workers cleared by Union Cupboard: Report

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Mar 28, 2025 03:38 PM IST

DA hike information: Cupboard approves a 2% enhance in Dearness Allowance for central authorities workers, elevating it from 53% to 55%, ET reported. Dearness allowance is given to assist authorities workers cope up with inflation.(Reuters)

HT.com could not independently confirm the authenticity of the knowledge.

With this revision, the Dearness Allowance (DA) will enhance from 53% to 55%, providing a wage hike for workers forward of the anticipated eighth Pay Fee.

The earlier hike befell in July 2024, when DA was raised from 50% to 53%.

DA is introduced bi-annually to assist central authorities workers address rising inflation. It is part of the workers’ take-home wage and is calculated as a portion of their primary pay.

For instance, for a base pay of ₹1 lakh, the DA could be 55% if the federal government introduced a 2% hike, which might equate to ₹55,000.

What’s Dearness Allowance (DA)?DA is more money that the federal government and public sector employers give to their workers and pensioners to assist them address rising costs.It’s calculated as a proportion of the essential wage and will get revised each six months primarily based on how a lot costs have gone up.There are two sorts—one for presidency workers and one other for public sector employees.DA is taxable, so it needs to be talked about in earnings tax filings.Impression on worker salaries

A 2% DA hike would increase the wage of an entry-level worker, a Multi Tasking Employees (MTS), with a primary pay of ₹18,000 by ₹360.

As an example, the worker with a primary pay of ₹18,000 at present receives ₹9,540 as DA (53%). A 2% hike would enhance their DA to ₹9,900, including ₹360 to their wage.

The final DA hike given to authorities workers in July 2024 was 3%, which had taken the DA from 50% to 53%.

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