Dearness Allowance Hike: Centre raises DA by up to 8% for these govt employees – Check if you’re eligible

Following its decision to revise the dearness allowance (DA) for the central government employees as well as the pensioners covered under the seventh pay commission, the Centre has now moved forward with the revision of the key allowance for those staff who are drawing salaries and pensions under the 5th Pay Commission and 6th Pay Commission. The latest decision has been communicated through an Office Memorandum (OM) by the Ministry of Finance.

Rate of DA  Increased

In its order, the Finance Ministry has said that the rate of DA for employees who are drawing salaries as per the 5th Central Pay Commission has been increased from the existing rate of 466 per cent to 474 per cent of the basic pay, and it will be effective from July 1.

Notably, the 5th Pay Commission’s 10-year term concluded in December 2005. The 6th Pay Commission started its term in January 2006 and lasted till December 2015. A section of government employees still draws their pensions under the 5th and 6th Pay Commissions.

5th And 6th Pay Panels

Their pay structures are as per the norms for the 5th and 6th pay panels. Following the end of a pay panel’s term, the DA gets merged with the basic pay as soon as the new pay panel term starts.

Moreover, the rate of DA for employees who are drawing their pay in the pre-revised pay scale/grade pay according to the 6th Central Pay Commission stands increased from the existing rate of 252 per cent to 257 per cent of basic pay. The enhanced allowance will take effect on July 1, 2025.

There are still several central government employees who are receiving salaries under the 5th and 6th Pay Commissions, as the recommendations of subsequent pay commissions, such as the 7th, have not been extended to their specific organisations. This became the case, especially in the context of some Central Autonomous Bodies (CABs) and Central Public Sector Enterprises (CPSEs).