DA Hike: The DA hike can be approved in the Union Cabinet meeting to be held on Wednesday. But, why is this happening? Because, according to the AICPI index, the dearness allowance should be 56 percent. But, then why is there talk of 2 percent?
DA Hike: A big update related to dearness allowance (DA) has come for central employees and pensioners. DA/DR is expected to increase by 2% from January 2025. It will be increased from 53% to 55%. This means that dearness allowance will increase the least in the last 78 months for central employees. DA hike can be approved in the Union Cabinet meeting to be held on Wednesday. But, why is this happening? Because, according to the AICPI index, dearness allowance should be 56 percent. But then why is there talk of 2 percent?
Why will dearness allowance increase by only 2%?
After the release of the All India Consumer Price Index (CPI-IW), it has been decided that DA/DR will increase by 2% from January 2025. The AICPI-IW for December 2024 stood at 143.7, which brought the DA calculation to 55.98%. However, as per government rules, the numbers after the decimal point are not added, so it will be increased from 53% to 55% only.
This will happen for the first time in 78 months
In the last few years, dearness allowance has increased at the rate of 3 or 4 percent. But for the first time in 78 months (6 and a half years) this will happen that DA will increase by only 2%. Earlier in the year 2018, dearness allowance was increased by 2 percent. Since then, only 3 or 4 percent increase has been seen continuously. This news has come as a big shock to the central employees. Actually, before the implementation of the new pay commission, the more growth there is in dearness allowance, the more benefit the employees will get. But, the 8th Pay Commission has just been announced and just after the announcement, the news of increase in dearness allowance by only 2% is coming.
What will be the impact of DA Hike?
If the basic salary of an employee is Rs 50,000, then after an increase of 2%, his DA will increase like this
| Salary (Basic Salary) | First DA (53%) | New DA (55%) | Increase (2%) |
|---|---|---|---|
| ₹50,000 | ₹26,500 | ₹27,500 | ₹1,000 |
| ₹70,000 | ₹37,100 | ₹38,500 | ₹1,400 |
| ₹1,00,000 | ₹53,000 | ₹55,000 | ₹2,000 |
Will it be approved in the cabinet meeting?
According to sources, this proposal may get final approval in the cabinet meeting on Wednesday (March 19). Usually, the government approves DA hike in March every year, due to which the employees get the benefit of arrears retrospectively. This means that the money for January and February will be added as arrears.
Is the hope for 3% over?
Looking at the government data, the hope of 3% is now over. If we look at the numbers in AICPI-IW December 2024, then dearness allowance has reached 55.98 percent. Usually in such a situation, the government should consider it as 56 percent. But, due to not adding the number after the decimal point, it is being limited to 55 percent. However, even before this, the government used to increase according to the future value in such a case. But in the current case, only 2% increase is expected from January 2025.
What will be the arrears?
The government will issue a formal order in March 2025 for the DA hike to be implemented from January 2025. Employees will get the benefit of increased dearness allowance along with the March salary and may also get the arrears of the last 2 months. The benefit of this increase will also be applicable to pensioners. DR will also be added to the pension of retired employees.
Most Read Articles:
- New Expressway: 342 KM long expressway will be built between these districts, this will be the route of the new highway
- 7th Pay Commission: Employees will soon get good news, DA will increase again, benefit of 2 months arrears also, know update on 18 months DA arrears as well
- Credit Card Link UPI: Link your credit card to UPI from home, know step-by-step guide
