DA Hike: The upcoming adjustment in Dearness Allowance (DA) for Central Government Employees and Pensioners is expected to occur in January 2025. Nonetheless, the government has yet to make any announcement concerning this matter. It is thought that the government could require some time to declare the DA increase, as the All India Consumer Price Index (AICPIN) data up to December 2024 will be awaited for the conclusive decision.
Final calculation after six months of AICPIN data
The central government announces the DA hike biannually, for January-June and July-December. Typically, the government conducts the final calculation after six months of AICPIN data becomes accessible. In this scenario, the government will reveal the DA increase only after receiving the AICPIN figures for July-December 2024.
Information for November and December is still pending
Currently, the data for July through October 2024 is accessible, but the information for November and December is still pending. The information for December 2024 will be accessible in February 2025. In other words, the government can declare the DA increase for January 2025 only after February. This year, the DA increase for July-December was revealed in October. The upcoming DA increase is anticipated to be revealed in March 2025. For instance, this year, the January 2024 DA increase was revealed in March prior to Holi.
Minimum wage will rise by Rs 540
On March 6, the government raised the dearness allowance by 4% to reach 50%. Then, it was raised by an additional 3% to reach 53% in October. If the central government raises DA by 3% for January 2025, the minimum wage will rise by Rs 540. Currently, the lowest monthly basic salary for employees of the central government is Rs 18,000. The adjustment in DA is based on AICPIN statistics. By October 2024, the AICPIN index had hit 144.5, potentially raising the dearness allowance to 55.05%.
This index is anticipated to hit 145.3 in November and December of 2024. If this happens, then the dearness allowance can reach 56% in January 2025.