7th Pay Commission: Holi is tomorrow, Friday 14 March. Every year’s pattern has been that DA hike is announced before Holi. However, this year so far no announcement has been made regarding DA hike.
7th Pay Commission: Holi is tomorrow, Friday 14 March. Every year’s pattern has been that DA hike is announced before Holi. However, this year so far no announcement has been made regarding DA hike. In such a situation, the wait of central government employees and pensioners is getting longer. It is reported that this week the Union Cabinet may take a final decision on the increase in dearness allowance (DA). If approved, the new DA will come into effect from January 2025. That is, employees will get an increase in March salary and will also get two months’ arrears. According to media reports, central government employees and pensioners may face disappointment, as they are expected to see a 2% increase in their dearness allowance (DA) instead of the 3% or 4% received in previous years.
What is the detail
According to a report by Financial Express, the All India Consumer Price Index (AICPI) data shows that DA is likely to be the lowest increase in the last seven years. Let us tell you that the government has consistently increased DA by at least 3% or 4% since July 2018 and sometimes even more. The upcoming 2% increase in DA will be the lowest increase since July 2018. The previous lowest increase was also 2% for the period July-December 2018.
DA increases twice
Let us tell you that the government regularly revises dearness allowance (DA) and dearness relief (DR) twice a year in January and July. The most recent increase in DA was in July 2024, which increased from 50% to 53%. Earlier, in March 2024, the Cabinet had approved a hike from 46% to 50%, which was officially announced on March 25, 2024. Under the 7th Pay Commission, the government had also hiked DA and DR by 3% on October 16, 2024. This made both of them 53% from July 1, 2024. The next announcement regarding DA and DR will follow this regular pattern of revisions.
The dearness allowance (DA) has increased steadily since the implementation of the 7th Pay Commission recommendations in January 2016 and has now reached the level of 53% after the latest revision for the July-December 2024 cycle. The government had announced a 3% hike in dearness allowance in October last year, taking it to the current level of 53%. Based on the July-December All India Consumer Price Index (AICPI) data, it is being estimated that there could be a 2% hike in DA for the January-June 2025 cycle.
8th Pay Commission
The government has recently announced the setting up of the 8th Pay Commission on January 16, 2025, whose recommendations will be implemented from January 1, 2026. This means that there will be only one more hike in dearness allowance (DA) under the 7th Pay Commission, which is likely to happen around Diwali this year.
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