7th Pay Commission DA Hike: A total of 3 percent increase is going to happen in the dearness allowance. Dearness allowance (DA) will become 56 percent. Dearness allowance is being given 53 percent from July 2024.
7th Pay Commission DA Hike: There is good news for central employees. Their increased dearness allowance may be announced just before Holi. It may get approval from the Cabinet. A total of 3 percent increase is going to happen in the dearness allowance. Dearness allowance (DA) will become 56 percent. Dearness allowance is being given 53 percent from July 2024. In fact, till December 2024, the AICPI index figure stood at 143.7 points, taking the total score of DA to 55.99%. In this way, Central government employees will get 56 percent dearness allowance.
56% has been confirmed
Dearness allowance is calculated on the basis of the average AICPI index of the last 6 months (July-December). But, 56 percent of dearness allowance has been fixed. Based on the AICPI numbers till December, dearness allowance has become 55.99 percent. In such a situation, the government will consider it as 56 percent only because, the one before 0.50 is rounded off by downward calculation and the one above is rounded off by upward calculation. Therefore 56 percent is fixed. Now it just has to get the approval of the cabinet. If sources are to be believed, it can be approved in the cabinet meeting to be held on Wednesday (12 March 2025).
What will be the effect of 56% DA on salary?
Due to the increase of 3% in dearness allowance, it will have a direct impact on the salary of the employees. Let us understand this with an example.
| Basic Salary (₹) | Current DA (53%) | New DA (56%) | Total Increase (₹) |
|---|---|---|---|
| ₹18,000 | ₹9,540 | ₹10,080 | ₹540 |
| ₹31,550 | ₹16,721.50 | ₹17,668 | ₹946.50 |
| ₹44,900 | ₹23,797 | ₹25,144 | ₹1,347 |
The rate of DA remains the same for pensioners as well. This will also affect the pension of pensioners. Their pension will increase by the same amount. The official announcement can be made by the government before Holi.
What is the benefit of increasing DA?
- Relief in facing inflation: DA compensates for inflation.
- Improvement in the salary of government employees: This increases the disposable income of employees.
- Benefit to pensioners: DA being implemented on pension also helps in old age.
- Burden on the government treasury: DA increase has a direct impact on the government treasury.
DA Hike will be implemented from January 1, 2025
After the figures of dearness allowance are released, it will be implemented from January 1, 2025. Since it is announced in March, the arrears of the last two months are also likely to come in the salary of March. Holi festival will be celebrated across the country on March 14, just before that central employees can get Holi gift in the form of increased dearness allowance. From July 1, 2024, dearness allowance is being given at the rate of 53 percent, which will increase to 56%.
