7th Pay Commission DA Hike: There is good news for central government employees and pensioners. The dearness allowance of central employees is going to increase before Holi. Holi is on March 14, 2025 in the country. Before that, the government can announce an increase in dearness allowance. Under the 7th Pay Commission, dearness allowance is increased twice a year
7th Pay Commission DA Hike: There is good news for central government employees and pensioners. The dearness allowance of central employees is going to increase before Holi. Holi is on March 14, 2025. Before that, the government can announce an increase in dearness allowance. Under the 7th Pay Commission, dearness allowance is increased twice a year. Once in March and second time in October. The first increase will be effective from January 1, 2025. Its official announcement is likely to be made around Holi in March 2025. However, no official confirmation has been made by the government yet.
How much will the salary increase due to DA hike?
According to employee organizations, this time the dearness allowance can increase by 3 to 4 percent. This can increase the salary of employees from Rs 540 to Rs 720 per month. For example, if the basic salary of an employee is Rs 18,000 monthly, then he is currently getting 9,000 under 50% DA.
With a 3% DA increase, the new DA will be Rs 9,540, i.e. an increase of Rs 540.
With a 4% DA increase, the new DA will be Rs 9,720, which will give Rs 720 more.
Pensioners will also get benefit
Dearness Allowance (DA) is given to employees, while for pensioners it is called Dearness Relief (DR). This time more than 1 crore government employees and pensioners will be able to take advantage of this increase.
How much was the increase last year?
In October 2024, the government increased DA by 3%, taking it from 50% to 53%.
In March 2024, the government increased it by 4% to 50%.
How is dearness allowance decided?
Dearness allowance is calculated on the basis of All India Consumer Price Index (AICPI). The government fixes the rates of DA and DR keeping in mind the average AICPI data of 12 months.
DA (%) = Average of AICPI of last 12 months – 115.76)/115.76) × 100
For public sector employees
DA (%) = Average of AICPI of last 3 months – 126.33)/126.33) × 100
Last DA hike before 8th Pay Commission
The 8th Pay Commission is likely to be implemented from 2026, but before that central government employees will get two DA hikes under the 7th Pay Commission. This will increase their monthly salary and also provide some relief from inflation. Now all the employees are waiting for the official announcement to be made in March 2025, which will make it clear how much the salary will increase.
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