The Central Government has once again given the gift of increase in Dearness Allowance (DA) to some of its employees and pensioners. This gift is for those employees who come under the 5th and 6th Pay Commission.
Revision of DA rates has been announced for such employees. Let us tell you that last week itself, it was announced to increase the DA of the employees covered under the Seventh Pay Commission.
how much increased
According to the order of the Finance Ministry, the DA of employees paid under the 5th Pay Commission has been increased from 466% to 474%. Thus, there has been an increase of 8 percent. This revised rate will be effective from July 1, 2025. If you understand in simple language, now these employees will get dearness allowance at the rate of 474% on their basic salary. Let us tell you that the tenure of the 5th Pay Commission had ended in December 2005. After this, the 6th Pay Commission was formed for the next 10 years. Under this, DA of salaried employees has been increased from 252% to 257%. This increase will also be applicable from July 1, 2025. Let us tell you that it was in force from January 2006 to December 2015. There are some Central Autonomous Institutions and Public Undertakings on which the recommendations of the 7th Pay Commission were not implemented. Employees of these institutions still come under the pay structure of 5th or 6th Pay Commission.
How much increase under the Seventh Pay Commission
Recently, while giving a Diwali gift, the Union Cabinet increased the DA and DR of about 49.19 lakh central government employees and 68.72 lakh pensioners by three percent. DA and DR till now was 55 percent of the basic salary/pension and the increase of three percent in it is effective from July 1, 2025. The increase in DA and DR will have an overall annual impact of Rs 10,083.96 crore on the exchequer. Let us tell you that the Center amends DA and DR twice a year. The previous amendment, announced in March, was effective from January 1.