Big news for crores of govt employees. The upcoming adjustment in the Dearness Allowance (DA) for employees of the central government is scheduled for January 2025. Nevertheless, it might take a while for the announcement of this increase, as the government needs to wait for the All India Consumer Price Index (AICPIN) data until December 2024 prior to raising the dearness allowance in January.
Grounds for rise in Dearness Allowance (DA)
The calculation of the Dearness Allowance (DA) relies on the AICPIN (All India Consumer Price Index) figures, which are published monthly. The government declares a DA increase two times each year—initially for January to June and then for July to December.
DA increase for January 2025
According to the AICPIN data from July to December 2024, it is projected that the Dearness Allowance could hit 56% in January 2025. If the government rises by 3%, the least salary of workers will go up by Rs 540, whereas for retirees this rise may be Rs 270.
Likelihood of an 8th Pay Commission
Labor unions have further heightened their call for the establishment of the 8th Pay Commission. He mentions that the government sets up a new pay commission every decade, and the 8th pay commission is expected to take effect on January 1, 2026. Should this occur, workers might anticipate an additional rise in their wages.
During a session in the Lok Sabha on December 3, 2024, Pankaj Chaudhary responded to written inquiries, stating that the government currently has no plans to establish the 8th Pay Commission. He emphasized that employee salaries and allowances are being determined based on the 7th Pay Commission’s recommendations, and there are no intentions to form a new Pay Commission at this time. This announcement effectively puts to rest the rumors and speculation suggesting that the 8th Pay Commission might be introduced soon.
