Are you also a central employee and are eagerly waiting for the announcement of an increase in Dearness Allowance (DA)? Earlier it was said that the government could give good news to the employees before Holi, but it did not happen. Under the 7th Pay Commission, DA / DR is increased twice a year.
The first increase comes into effect from January 1 and the second from July 1. This year, i.e. the first increase of 2025 is to be implemented from January 1, the official announcement of which is yet to be made. Will your wish be fulfilled next week? Let us know.
Decision possible in a cabinet meeting
According to media reports, the government is going to announce an increase in DA soon. A final decision on this is expected in the upcoming cabinet meeting to be chaired by Prime Minister Narendra Modi. The cabinet meeting may be held on next week.
Let us tell you that Dearness Allowance (DA) is given to current government employees, while for pensioners it is called Dearness Relief (DR).The government fixes the rates of DA and DR every six months keeping in mind the average data of AICPI. In this way, employees get the gift of increased DA twice a year.
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How much will be the increase?
For the last few days, there has been speculation on how much DA i.e. dearness allowance will increase. This time a 2% increase is being said to be more likely. The AICPI data from July 2024 to December 2024 will decide how much DA / DR will increase in January 2025.
According to the Labour Bureau, the AICPI for December 2024 has fallen by 0.8 points to 143.7. Due to the reduction in inflation, there are indications of a 2% increase in DA this time. Whereas earlier a three percent increase was expected. Let us tell you that currently DA is being given at the rate of 53 percent.
How much was the increase earlier
The All India Consumer Price Index (AICPI) data from July 2024 to November 2024 indicated that DA/DR could increase by at least 3 percent in January 2025. However, after the release of December data, its possibility has decreased. The government had increased DA by 3% in October last year, after which it increased from 50 percent to 53 percent.
Know the impact on salary
If there is a 2% increase in DA for January 2025, then entry-level employees, whose minimum basic salary is Rs 18,000, can get a benefit of Rs 360. While for pensioners, the increase will be Rs 180, as their minimum pension is Rs 9000. By the way, some reports have also estimated a 3% increase. As per the 3 percent hike, the monthly salary of an entry-level employee can increase by Rs 540.
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