Central Government DA Hike: DA is determined on the basis of data from the All India Consumer Price Index for Industrial Workers (AICPI-IW).
Dearness Allowance Hike: If you are a central government employee or pensioner, then your salary and pension may increase soon. The government may soon announce an increase in Dearness Allowance (DA) and Dearness Relief (DR). This increase will be effective from January 1, 2025.
Experts estimate that this time DA may increase by 2% to 4%. However, if there is an increase of only 2%, it will be one of the lowest increases in the last 7 years.
What is the math of DA increase?
The central government reviews DA twice a year, in January and July. DA is determined on the basis of data from the All India Consumer Price Index for Industrial Workers (AICPI-IW). Currently, DA is at 53% and if there is an increase of 2%, it will become 55%.
For example, if the basic salary of an employee is ₹ 20,000, then a 2% DA increase will increase his salary by ₹ 400. Similarly, a 3% or 4% increase will increase the amount by Rs 600 and Rs 800. In October 2024, the government increased the DA from 50% to 53%.
What is the status of the Eighth Pay Commission?
Apart from this, the government is also considering the 8th Pay Commission, which can be implemented from January 1, 2026. If it is implemented, there will be further increase in the salary and pension of central government employees and pensioners.
The Governor of the Reserve Bank of India (RBI) recently said that the Consumer Price Index (CPI) based inflation rate is likely to be 4.8% in the current financial year. If the inflation rate remains high, then there will be a possibility of a relatively higher increase in DA.
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