Great news for a ton of central government employees! There’s a noticeable increase in the dearness allowance coming up. Talks are swirling about another significant jump in the DA. Based on the AICPI index data, it looks like the DA hike for employees will be around 3 percent. Current trends suggest that by January 2025, the Dearness Allowance could hit 56 percent. Let’s break down how this is calculated. The AICPI Index numbers are available up to October, and projections for November and December also indicate a 3 percent increase in DA.
AICPI Overview
The AICPI index measures inflation and changes in commodity prices across the country. So far, we’ve got the figures for July, August, September, and October 2024 for this half of the year. In July, the index was at 142.7 points, which brought the dearness allowance to 53.64 percent. In August, it dipped slightly to 142.6 points, resulting in a DA of 53.95%. By September, the index rose to 143.3 points, pushing the allowance to 54.49%. The latest data from October shows the index at 144.5 points, leading to a DA of 55.05%. Currently, the dearness allowance stands at 53 percent, effective from July 2024.
New DA Kicks In January 1
The central government updates the DA every six months. After a 3% increase in July 2024, another 3% rise is expected in January 2025. This change will benefit over 10 million employees and pensioners. The new dearness allowance for central employees will take effect in January 2025, with an announcement likely in March 2025, typically around Holi.
Salary Hike Breakdown
DA from January 2025: ₹18,000 x 56% = ₹10,080/month
DA from July 2024: ₹18,000 x 53% = ₹9,540/month
So, with the 3% increase, that’s a difference of ₹540 per month.
