Centre hikes DA by 2 pc; delay sparks unions’ push for 8th Pay Commission
Allowance raised to 60% effective January 1; employee bodies demand a major salary revision, including ₹69,000 minimum pay and a higher fitment factor
The Centre has hiked the Dearness Allowance (DA) for all its employees by 2 per cent. The hike will be effective from January 1. Increase in DA is usually announced by the Central government twice a year, in January and July, with the related notification published later in the year, usually around festivals like Holi or Diwali.
The development comes amid discontent among Central government employees due to the delayed announcement of hike in DA. Before the latest hike, the DA rate was 58 per cent of the basic salary.
The Cabinet’s decision is expected to raise take-home pay for employees at a time when household expenses remain elevated. The increase also comes as employee unions continue to press for a broader restructuring of wages under the proposed 8th Pay Commission.
Push for 8th Pay Commission revision
In a memorandum submitted to the government, the National Council–Joint Consultative Machinery (NC-JCM) called for a substantial upward revision in salaries, seeking a minimum basic pay of Rs 69,000, and a fitment factor of 3.83.
Also Read: Lower DR for pensioners than DA arbitrary, violates Article 14: SC
If the demand is accepted, the minimum basic pay could rise sharply from the current Rs 18,000 to about Rs 69,000, representing a major overhaul of the existing pay framework, reported NDTV.
The other demands include an annual increment of 6 per cent, an HRA minimum slab of 30 per cent, and restoration of old pension schemes.
DA calculation and revision cycle
The Union Cabinet has cleared a 2 per cent increase in Dearness Allowance (DA) for government employees and pensioners following its latest meeting, reported India Today, quoting sources.
Also Read: Central govt employees, pensioners get 3% DA hike ahead of Diwali
The allowance, linked to inflation, is revised twice a year, typically in January and July. It is worked out based on the Consumer Price Index for Industrial Workers (CPI-IW), released monthly by the Labour Bureau under the Labour Ministry.
Delay flagged by unions
This year’s announcement, however, came later than usual. The Confederation of Central Government Employees and Workers (CCGEW) had flagged the delay, noting that the revision is generally declared toward the end of September, with arrears disbursed in early October.
Alongside the DA revision, the Cabinet approved the setting up of a Sovereign Maritime Fund with a corpus of Rs 13,000 crore. The proposed fund is intended to support affordable and stable insurance coverage for Indian-flagged vessels and ships operating on routes linked to India.
The Cabinet also cleared an extension of the Prime Minister Gram Sadak Yojana (PMGSY) till 2028, backed by an additional allocation of Rs 3,000 crore.