7th Pay Commission DA Hike: Due to inflation rate and inflation, the government has to revise the dearness allowance of central employees and pensioners every six months. The next amendment is to be implemented from January 1, 2025, which the government can approve by March 2025.
7th Pay Commission DA Hike: There is great news for central employees and pensioners. The government may soon increase their dearness allowance (DA). This increase will come into effect from January 1, 2025. This will increase the salary and pension of lakhs of employees (Central govt employees) and pensioners. At present DA is at 53%, but it is expected to be 56% from January 2025. Just one more number is awaited. As soon as that number is updated, it will be confirmed how much dearness allowance (DA Hike) will be available. AICPI data from July 2024 to November 2024 has come and now only December numbers are awaited.
How much can dearness allowance increase?
Dearness allowance is calculated on the basis of AICPIN (All India Consumer Price Index for Industrial Workers) data.
- In June 2024, the government increased DA from 50% to 53%.
- Now, according to the new data of AICPIN, another 3% increase in DA is possible in January 2025.
- This means that DA can increase to 56% from January 1, 2025.
Due to inflation rate and inflation, the government has to revise the dearness allowance of central employees and pensioners every six months. The next amendment is to be implemented from January 1, 2025, which the government can approve by March 2025.
AICPI data: June 2024 to November 2024
| Month | AICPI (base year 2016=100) |
|---|---|
| June 2024 | 141.4 (53% DA announced) |
| July 2024 | 142.7 |
| August 2024 | 142.6 |
| September 2024 | 143.3 |
| October 2024 | 144.5 |
| November 2024 | 144.5 |
How much will the salary increase due to increase in dearness allowance?
If there is a 3% increase 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 |
This will also affect the pension of pensioners. Their pension will increase by the same amount. The government can make an official announcement in this regard by March 2025. Till then, central employees and pensioners will have to keep an eye on the AICPIN data.
Important things related to DA hike
- DA is calculated once in 6 months, and it depends on the inflation rate data of the government.
- DA is revised under the 7th Pay Commission.
- DA is likely to be 56% from January 2025.
- The increased DA will directly increase the total salary and pension of employees and pensioners.
- If the government decides to increase the dearness allowance to 56% from January 2025, then employees and pensioners will get relief. The salary increase will have a direct impact on their monthly income and it will be easier to manage expenses.
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