A very good news for central govt employees. There is big update revealed regarding DA. Central employees have some exciting news to look forward to in the new year. It’s anticipated that the dearness allowance (DA) could rise to 56 percent. This increase is expected to be determined by the AICPI index through October 2024, with implementation set for January 1, 2025.
The November data has not been released following the October 2024 AICPI index figures, which were due by December 31. However, the numbers for both November and December are expected to be available by January 31. The AICPI index recorded 143.3 points in September 2024 and 144.5 points in October 2024.
The dearness allowance is calculated based on the AICPI index, which is published at the end of each month. Changes to the DA typically occur every six months. Even a one percent increase in the dearness allowance can significantly boost employees’ salaries.
Since November, the DA has already surpassed 55 percent, and the figures for the last two months of the previous year are still pending. New DA figures may be announced in March, effective from January 1, 2025. Currently, employees are receiving a 53 percent DA, effective from July 1, 2024. The dearness allowance helps employees cope with inflation, increasing their disposable income and enabling them to manage rising costs. Additionally, an increase in the DA also benefits pensioners, although it does have implications for the government’s budget.
