There is no good news for central employees and pensioners. In the new year, i.e., January 2025, they may face a severe setback. The DA hike may see the lowest jump ever. The increase in the dearness allowance is estimated to be the lowest compared to the last three years. In fact, the central government decides to increase the Dearness Allowance every six months based on the AICPI index.
DA Hikes update
According to the data up to September 2024, the DA hike for January 2025 for employees is expected to rise by 2 to 3 percent. Based on the current data, the DA of central employees has reached 54.49%. However, the figures for October, November, and December are yet to be released.
What do the latest AICPI Index data indicate?
According to the data released by the Labour Bureau, the AICPI index stands at 143.3 points as of September 2024. Accordingly, the dearness allowance until September has been 54.49%. The numbers for October, November, and December are still pending. However, the figures for October and November should have been released, but they have been delayed. Going by the current trend, the DA is again projected to increase by just 3% in January 2025.
What will be the new figure for Dearness Allowance?
DA as of July 2024: 53%
Potential DA in January 2025: 56%
How much could a DA hike cost?
If you look at the current trend, the index number is expected to reach 143.6 in October. With this, the Dearness Allowance for Central Government Employees will reach 54.96%. At the same time, based on the same trend in November, the index could touch 144 points. With this, the dearness allowance could be 55.41%. Additionally, as of December 2024, the index is showing a trend of 144.6 points. In this case, the dearness allowance is estimated to be 55.91%. In such a scenario, central employees will once again have to settle for a 3% increase.
Impact of the DA hike on salary
7th CPC Update: If your basic pay is ₹18,000 and the dearness allowance is 56%, then the calculation will be as follows:
DA as of January 2025: ₹18,000 x 56% = ₹10,080/month
DA as of July 2024: ₹18,000 x 53% = ₹9,540/month
Difference with a 3% increase: ₹540 per month.
