Good news for crores of government employees. The government might be gearing up to boost the dearness allowance (DA) soon. This change is set to kick in on January 1, 2025, and it’s going to benefit a ton of central government employees and pensioners. Right now, the DA stands at 53%, but there’s a good chance it could jump to 56% come January. We’re just waiting on one last number to finalize the details. The AICPI data from July to November 2024 is in, and now we just need the December figure.
So, how much could the dearness allowance actually go up?
The DA is based on the AICPIN (All India Consumer Price Index for Industrial Workers) data. Back in June 2024, the government raised the DA from 50% to 53%. With the latest AICPIN data, it looks like we could see another 3% increase in January 2025, bringing the DA to 56%.
Thanks to inflation, the government reviews the dearness allowance for central employees and pensioners every six months. The next update is expected to be approved by March 2025, effective from January 1, 2025.
Here are some key points about the DA hike:
1. DA is adjusted every six months based on government inflation data.
2. It’s revised under the 7th Pay Commission.
3. A 56% DA is anticipated starting January 2025.
4. This increase will directly boost the salaries and pensions of employees and pensioners.
5. If the DA rises to 56%, it’ll provide some much-needed relief for employees and pensioners.
6. The salary bump will positively affect their monthly earnings, making it easier to handle expenses.