7th Pay Commission DA Hike: In the last DA hike in October 2024, central government employees got a DA hike of 3 per cent with effect from July 1, 2024. After the hike, the DA had increased from 50 per cent to 53 per cent of the basic pay. Pensioners also got the same hike in dearness relief.
7th Pay Commission DA Hike: Even though the 8th pay commission is expected to be implemented next year, central government employees will get at least two DA hikes under the current 7th pay commission. The upcoming DA hike, which will be effective from January 1, 2025. is expected to be announced around Holi in March. However, there has been no official announcement on this. The DA hike, which is announced twice a year (effective from January and July), increases the take-home pay of central government employees in accordance with the inflation rate.
How much can the salary increase
In the last DA hike in October 2024, central government employees got a DA hike of 3 per cent from July 1, 2024. After the hike, the DA had increased from 50 per cent of the basic salary to 53 per cent. Pensioners also got the same hike in dearness relief.
According to the expectations of the employees union, the central government may announce a 3-4 per cent DA hike for employees this time around Holi in March 2025. On this DA hike, the salary of an entry-level central government employee, whose basic salary is around Rs 18,000 per month, will increase in the range of Rs 540-720 per month from January 1, 2025. If someone has a salary of Rs 30,000 per month and basic salary is Rs 18,000, he now gets a dearness allowance of Rs 9,000, which is 50 per cent of the basic salary. However, after the expected 3 per cent hike, the employee will get Rs 9,540 per month, which is Rs 540 more. However, in case of a 4 per cent DA hike, the employee will get a revised DA of Rs 9,720 per month. If someone’s salary is around Rs 30,000 per month and the basic salary is Rs 18,000, his salary will increase by Rs 540-720 per month. However, according to a Financial Express report, the latest CPI-IW indicates a 2% increase in DA for central government employees from January 2025, bringing it to 55.98% under the 7th CPC.
How does the government decide on DA hike?
DA and DR hikes are decided based on the percentage increase in the 12-month average of the All India Consumer Price Index (AICPI) for the period ending June 2022. Although the central government revises allowances on January 1 and July 1 every year, the decision is usually announced in March and September. In 2006, the central government had revised the formula for calculating DA and DR for central government employees and pensioners.
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