DA Hike 2025: There will be good news for central government employees and pensioners in the new year 2025. There is a possibility that Dearness Allowance (DA) will be increased by 3 per cent, which will directly benefit thousands of government employees and pensioners. Everyone is eagerly awaiting this announcement as the Dearness Allowance makes a significant contribution to the monthly salary.
The government is revising the DA under the 7th Pay Commission. This allowance, which is determined on the basis of AICPI (All India Consumer Price Index), is reviewed every six months. This time, the data from July 2024 to December 2024 will decide how much the DA will increase in January 2025. According to the data so far, the DA could increase by 3 per cent in January, which is expected to take it from 53 per cent to 56 per cent. However, the final decision will only be made after the December 2024 AICPI data.
How is the calculation made?
The calculation of the hardship allowance will be based on the AICPI index in accordance with the provisions of the 7th Directive. This time, the data up to October 2024 has been published, in which the AICPI value is 144.5. If this value remains at 145 in November and December 2024, a 3 per cent increase in the DA is considered certain. This will lead to a significant increase in the monthly salaries and pensions of civil servants and pensioners.
The revision of the cost-of-living allowance not only strengthens the financial situation of employees, but also helps to cushion inflation. It is a relief for the monthly budget of every civil servant and pensioner.
Salaries will increase
The DA hike will significantly increase the salaries of government employees. The 3 per cent increase may seem small, but it will bring a big change to the monthly income of employees and pensioners. For example, salaried employees whose basic salary is ₹ 50,000 will get an additional benefit of ₹ 1,500 after the DA hike.
This will increase the purchasing power of employees, which will also boost the domestic market. The special thing about this is that this increase is not only beneficial for current employees, but also for pensioners.
When will the announcement be made?
The formal announcement of the pay hike is usually made in March. The government may announce it before Holi so that the employees get good news on the festive day. However, it is expected that the money for the increased allowance will be received with the salary in March or April.
Under the 7th Pay Commission, the DA revision takes place twice a year the first time in January and the second time in July. This revision is based on the average of the AICPI data for the period July-December and January-June. This time too, the government can announce an increase in the DA by March, which would be a relief for many employees and pensioners.
