How much will the dearness allowance of government employees increase in the new year? How much will the salary increase? Know the update on DA Hike
At present, central employees pensioners are getting the benefit of 53% DA from July 2024. It is estimated that there may be an increase of 3 to 4 percent from January 2025, after which DA can reach 56 or 57 percent.
7th Pay Commission DA Hike 2025: There is good news for central employees and pensioners. Once again, dearness allowance is going to increase by 3 percent, after which DA will increase to 56 percent. This estimate has been made from the data of AICPI from July to October 2024. However, the figures of November December are yet to come, after which the situation will be clear as to how much dearness allowance will increase from January 2025.
Actually, the Central Government revises the rates of dearness allowance and dearness relief of central employees and pensioners twice every year, which depends on the half-yearly data of the All India Consumer Price Index. This increase is done every year from January/July, which is announced around March and October. Talking about the year 2024, DA was increased by 4% from January 2024 and 3% from July, after which DA has become 53%, now the next increase is to be done from January 2024, which is likely to be announced after Budget 2025-26.
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DA Hike 2025: Dearness allowance will increase by 3 or 4 percent
- Currently, 48 lakh central employees and 68 lakh pensioners are getting the benefit of 53% DA. Now the next DA is to be increased from January 2025, which will depend on the data of AICPI index from July to December 2024.
- If we look at the data from July to October, the AICPI Index has reached 144.5 and the DA score has reached 55.05%, in such a situation, a 3% increase in DA is certain, although the data for November and December are yet to come.
- Usually the November figures are released by the Ministry of Labor on 31 December 2024 but this time there has been a delay. It is expected that the November-December figures can now be released together in January. After this it will be decided how much percentage increase will be in DA.
DA Hike : There will be a big increase in salary pension
- At present, central employees pensioners are getting the benefit of 53% DA from July 2024. It is estimated that there may be an increase of 3 to 4 percent from January 2025, after which DA can reach 56 or 57 percent. It is expected to be announced around Holi in March. This increase will be done under the 7th Pay Commission.
- For example, employees earning a minimum salary of Rs 18,000 will get an increase of Rs 540 on a 3% DA hike, while those earning a maximum salary of Rs 2,50,000 will get an increase of Rs 7,500. Pensioners will also benefit from this, whose pension may increase by Rs 270 to Rs 3,750.
This is how dearness allowance is calculated
- The increase in DA and DR is calculated based on the percentage increase in the 12-month average of the All India Consumer Price Index (CPI-IW) for industrial workers. The government usually revises these allowances on January 1 and July 1 every year.
- DA for central government employees is calculated like this- DA% = [(Average of AICPI (Base Year 2001 = 100) for last 12 months – 115.76)/115.76] x 100
- DA for public sector employees is calculated like this- DA% = [(Average of AICPI (Base Year 2001 = 100) for last 3 months – 126.33)/126.33] x 100
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