The year 2025 is a significant reprieve to the central government employees and pensioners. Millions are smiling on the news of the recent increase on dearness allowance (DA) and arrears payment. The decision to stop payments of DA arrears of 18 months is in full swing and the government has to act in this direction. And now we know about the recent news on DA arrears of 2025 and it hits the finances also.
2 Percent Increment In DA
Since the month of January 2025, there is an addition of dearness allowance of 2 percent to a total of 55 percent. This rise was made based on All India Consumer Price Index (AICPI-IW) and it now stood at 143.7 points in December, 2024. The governmental decision on this increase was made on the last day of March 2025, because of which the delay in payment since the beginning of the year (January-March) will be covered with the April salaries of 2025. This is the least increment in the past seven years, however, it is a significant step towards the employees.
Arrears Payment Calculation
The central government has determined to clear three month DA arrears of January 2025-March 2025. All the employees whose basic salary is at least 18,000 will receive extra money in the amount of 360 per month and the sum of the arrears will amount to 1,080. Simultaneously, the pensioners will receive a benefit of 180 Rs per month, i.e. the amount as an arrear of three months will be 540 Rs with minimum pension of 9,000 Rs. This money will be credited to their account on April 2025.
it Is Anticipated That 18 Months Arrears Will Be Paid
This long-standing demand is the demand of DA and DR arrears of 18 months stopped in Kovid-19. This has been one of the points that have been raised severally in the National Council (JCM) meetings. The Finance Ministry is said to unveil it in the financial year 2025-26 in phases. The pensioners and the lower level employees might be given the first preference. This settlement will give relief to lakhs of employees on the financial front.
Future And Eighth Pay Commission
January 2025 is time when the Eighth Pay Commission has been constituted, after which its suggestions can be applicable till 2026. This commission will investigate whether it can be possible to make DA zero and to incorporate it to the basic salary. In the meanwhile, it is likely that the next increase of the DA in July 2025 is announced in October-November 2025. This will also mean relief to the employees and pensioners.
Effect Of Financial Relief
It will provide financial stability to the employees and the pensioners through agreement of payment of DA arrears. It will boost their purchasing power not to mention boosting the economy. The government shift is a gesture to appreciate the effort of its employees within the pandemic.
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