Central government employees and pensioners are in for some exciting news as we head into 2025. There’s a good chance that an increase in their Dearness Allowance (DA) will be announced soon, and everyone’s eagerly anticipating it. Let’s break down how DA is calculated and when we might hear the official announcement.
So, how is DA figured out?
According to the 7th Pay Commission, the DA is based on the AICPI (All India Consumer Price Index). The increase for this round will depend on the AICPI data from July to December 2024. As of October 2024, it looks like the DA could go up by 3% in January 2025, since the AICPI was sitting at 144.5. However, we’re still waiting on the numbers for November and December. If those months show a figure around 145, we could see the DA rise to 56 percent come January 2025.
How will employees benefit from this?
The decision to raise the Dearness Allowance (DA) for central employees primarily relies on the All India Consumer Price Index (AICPI). Recent data suggests that the government might boost the DA from 53 percent to 56 percent in the upcoming year.
This 3 percent increase in dearness allowance could result in a notable rise in the monthly earnings of central employees. If the DA is indeed raised by 3 percent, government employees and pensioners will experience a significant change in their financial situation.
When can we expect the DA hike announcement?
According to the 7th Pay Commission, the DA is revised biannually, with adjustments made in January and July. This revision is determined by the average AICPI index. The upcoming DA revision for January 2025 will be based on AICPI data collected from July to December 2024.
The official announcement regarding the increase in the Dearness Allowance for central employees is typically made in March. The government may choose to reveal it before Holi, providing a festive surprise for government employees and pensioners. However, the DA adjustment may be reflected in the salaries for March or April.
