DA Hike Announcement Update: Dearness Allowance is decided on the basis of AICPI (All India Consumer Price Index). This index is released every month and dearness allowance is increased according to the average of 6 months (July-December).
DA Hike Announcement Update: With the beginning of the year 2025, another big good news can come for the central employees. There is a possibility of increase in Dearness Allowance (DA). The figures of AICPI index till October 2024 have come out and on the basis of these, DA can reach 56%. Meaning overall it can see a jump of 3 percent. However, the figures of November and December 2024 are awaited, but the new dearness allowance is expected to be implemented from January 1, 2025.
AICPI Index: How is DA decided?
Dearness allowance is decided on the basis of AICPI (All India Consumer Price Index). This index is released every month and dearness allowance is increased according to the average of 6 months (July-December).
September 2024: 143.3 points
October 2024: 144.5 points
According to these figures, DA has crossed 55%. The figures for November and December are yet to come. The November number should have been released by December 31, but it has been delayed. Now the December number will come by January 31. It is expected that the November and December numbers can be released together.
What will be the effect of 56% DA on salary?
Every 1% increase in dearness allowance has a significant impact on the monthly salary of the employees.
Example:
Basic Pay: ₹18,000
53% DA: ₹9,540
56% DA: ₹10,080
Benefit: ₹540 per month
Basic Pay: ₹56,100
53% DA: ₹29,733
56% DA: ₹31,416
Benefit: ₹1,683 per month
The rate of DA remains the same for pensioners as well. Which is increased to their existing pension.
What is the benefit of 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 applicable on pension also helps in old age.
- Burden on the government treasury: The DA hike has a direct impact on the government treasury.
New DA will be implemented from January 1, 2025
After the figures of dearness allowance are released, it will be implemented from January 1, 2025. However, it will be announced in March. Usually the government announces it around Holi. At present, dearness allowance is being given at the rate of 53 percent from July 1, 2024. After cabinet approval, the Finance Ministry notifies it.
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