In 2025, the central government is set to share some exciting news with its employees and pensioners. There are indications that a rise in the dearness allowance (DA) for central employees could be announced shortly. As the new year approaches, both government employees and pensioners are eagerly anticipating this adjustment. In this article, we will explore how the DA is calculated and when the announcement is expected.
The central government determines the dearness allowance based on the Seventh Pay Commission, using the All India Consumer Price Index (AICPI) as a reference. This time, the commission will base its decision on AICPI data collected from July to December 2024. Preliminary data available until October 2024 suggests that there could be a three percent increase in DA come January 2025, as the AICPI index stood at 144.5 during that period.
What this means for employees
According to the Seventh Pay Commission, the dearness allowance is linked to the AICPI index. Reports indicate that the DA for central employees may rise by three percent in the new year. While the figures for November and December are still pending, if they hover around 145, the DA could potentially reach 56 percent in January 2025. Currently, the dearness allowance for central employees is at 53 percent, and if the increase occurs, it could rise to 56 percent.
DA Hike 2025: When’s the Next Increase?
According to the Seventh Pay Commission, central employees receive their dearness allowance (DA) twice a year—once in January and again in July. This allowance is determined by the AICPI index. There’s talk that the next increase in DA for central employees might be announced in March.
The government could surprise employees and pensioners with a Holi gift by rolling out the new DA before the festival. This means the updated allowance could be included in the salaries for March or April.
Expect a 3% DA Boost
Recent updates suggest that central employees and pensioners might see a 3% increase in their DA come January 2025. Currently, they receive 53% DA, so if this increase goes through, it could rise to 56% starting in January.
