Central government employees and pensioners working under the 7th Pay Commission have long awaited the DA and DR increase announcement. Inflation is being hiked, and thus it is being expected that the employees might get quite a significant increase; however, as per the recent reports, there is a chance that the government might approve only a 2% hike, which is much lesser than the earlier expectations. The proportionate anticipation for a bigger hike has led employees and pensioners to worry about their payments and pensions once again.
What Is The Expected DA Hike?
The Dearness Allowance is revised twice yearly and raised once in January and once in July to offset inflation. As per the recent reports, the January death may bring about a 2% increase in the current DA attachment of 46% to being raised to 48%. However, earlier speculation spoke of an increase of possibly even 4%, which would carry it to 50%.
The disappointment of a mere 2% increase instead of a 4% will be felt hard by employees, who have very compelling reasons. For one, it is an increase of that impacting their monthly salaries and benefits. In parallel, Dearness Relief-dependent pensioners would also be in for much lower benefits if it were just a 2% increase.
Why Is The DA Hike Limited to 2%?
There are a few key reasons why the government may settle for a 2% DA hike:
- Lower inflation rates in recent months have reduced the urgency for a higher hike.
- Budget constraints may be preventing the government from approving a higher percentage.
- The government is also focusing on other welfare schemes and economic measures ahead of elections.
Yet the employees are marching on to demand the government reconsider and increase DA by 4%, the convention of the increment in recent years.
Impact On Central Government Employees And Pensioners
If the DA were to remain at 2%, those employees would feel increment in their take-home salaries much lesser than expected. Even the pensioners who are surviving on Dearness Relief (DR) will see only a low increment in their pensions.
Had it been a 4% increment, DA would have crossed the 50% level, opening up hypothetical possibilities for the merging of DA into the basic pay, thus reaping further monetary benefits. With a 2% increment, such possibilities stand indefinitely shelved.
Conclusion
An announcement on the DA and DR hike for January 2025 will be made soon in the near future. It is but natural for the employees and pensioners to be unhappy with a 2% hike. But the unions are against this, and the government may actually be coerced to rethink. Until the government issues a notification, the employees must wait for the percentage hike that will come on behalf of the DA.
Also Read: 8th Pay Commission Latest Update: Predicted Salary Increase For Govt Staff