Again to increase DA before the formation of 8th Pay Commission! Here’s the latest update

DA Hike: An announcement regarding an increase in the dearness allowance (DA) for central employees is anticipated in the near future. This adjustment is expected to take effect from January 2025. It is important to note that the Central Government has already approved the establishment of the 8th Pay Commission, although it has yet to be officially formed. Reports suggest that the formation of the 8th Pay Commission for central employees may occur next month.

Dearness allowance is typically revised biannually

Recently, Expenditure Secretary Manoj Govil indicated that the new Pay Commission could commence its operations in April. Consequently, the announcement regarding the increase in dearness allowance may occur prior to the establishment of the 8th Pay Commission. The dearness allowance is typically revised biannually. In October of the previous year, the DA was raised by 3 percent, bringing it to 53 percent of the basic salary. Should there be a 2 percent increase this time, it would rise to 55 percent.

The final adjustment

This potential increase in DA may represent the final adjustment prior to the formation of the 8th Pay Commission. Following this, a further enhancement in the salaries of central employees is anticipated with the implementation of the 8th Pay Commission. According to media sources, both the dearness allowance for central employees and the DA for pensioners may see a 2 percent increase.

However, the ultimate decision rests with the government. It is noteworthy that in October of the previous year, the government raised the DA by 3 percent. The calculation of the dearness relief for DA and pensioners is based on the Consumer Price Index (CPI-IW) applicable to industrial workers.

Employee unions are advocating for the inclusion of DA in the basic salary. This inclusion was practiced during the 5th Pay Commission, where it was stipulated that if the DA exceeded 50 percent, it would be added to the basic salary. The government implemented this rule in 2004, but it was abolished by the Sixth Pay Commission.