The Union Cabinet has sanctioned a 2% hike in dearness allowance (DA) of central government staff from 53% to 55%. The decision has been taken before the 8th Pay Commission comes into effect to modify salaries and allowances of government employees.
DA is given to government employees to counter the effect of inflation and increased prices. During the last revision in October 2024, the government had raised DA by 3%, taking it to 53% of basic pay.
8th Pay Commission and Future Revisions
The Centre gave its go-ahead for the 8th Pay Commission in January 2025, paving the way for future wages and allowance modifications. The formal notification of the commission, including appointment of a chairman and at least two members, is imminent.
While DA and Dearness Relief (DR) are revised every six months, this might be the last hike before the Pay Commission enters discussions with stakeholders.
Demand for DA Merger with Basic Pay
Employee forums have called for DA to be amalgamated with basic pay before the report of the 8th Pay Commission is implemented. In the 5th Pay Commission, there was a policy that mandated the amalgamation of DA with basic pay when DA crossed 50%. Though in 2004 the government continued this practice, it was abolished in the 6th and 7th Pay Commissions.
With the recent increase, central government staff will enjoy a better pay scale, even though more revisions are subject to the 8th Pay Commission’s future discussions.
