The central government is expected to provide gifts to its employees as the new year approaches. There are indications that an increase in Dearness Allowance (DA) may be announced in January. Reports suggest that this increase could be between 3 to 4 percent for central employees, with the new DA rate taking effect from January 1, 2025.
Historically, the government tends to announce the DA increase for January in March. While the announcement can happen at any time, it is typically backdated to January 1. The DA is adjusted twice a year, on January 1 and July 1.
Currently, the Dearness Allowance and Dearness Relief stand at 53 percent
Last year, the DA was raised in the first week of October, but it was retroactively applied from July 1. The increase was 3 percent, bringing the DA to 53 percent. Earlier, in March 2024, there was a 4 percent increase, raising the DA to 50 percent of the basic pay. Now, it remains at 53 percent of the basic salary, with pensioners also receiving a Dearness Relief of 53 percent.
Could we see a DA of 57 percent?
If the government opts for a 4 percent increase, the DA would rise to 57 percent. Conversely, a 3 percent increase would bring it to 56 percent.
