Employees DA Hike: The central government reviews DA twice a year—first time in January and second time in July.
Employees DA Hike: Before Holi, the central government can give a big gift to its employees and pensioners. According to media reports, the government may soon announce an increase in Dearness Allowance and Dearness Relief. A cabinet meeting may be held today i.e. on March 5 under the chairmanship of Prime Minister Narendra Modi, in which a decision can be taken on this.
If approved by the cabinet, government employees will get increased dearness allowance before Holi. The government has already announced DA hike before festivals, which provides relief to the employees.
If the government increases DA and DR, then more than 1.2 crore central employees and pensioners will benefit from it.
Why is the announcement made around Holi?
The central government reviews DA twice a year—first time in January and second time in July. The increase to be decided in January is usually announced in March around Holi, so that the employees can get relief before the festival. At the same time, the increase to be decided in July is announced in October or November around Diwali.
How is DA decided?
The central government analyzes the data of All India Consumer Price Index for Industrial Workers (AICPI-IW) to decide the rate of dearness allowance (DA). This index is released by the Labor Bureau, Shimla. The government takes a decision to increase DA on the basis of the AICPI-IW report of the last six months.
According to the data of December 2024, this time a 2% increase in dearness allowance is expected. However, the final decision will be taken after the approval of the Union Cabinet headed by the Prime Minister.
The central government had given a big gift to its employees before Holi in March 2024 by increasing the dearness allowance (DA) by 4%, taking the rate to 50%. After this, in October 2024, the government once again increased the DA by 3%, after which the dearness allowance increased to 53%.
New dearness allowance to be implemented from January 1, 2025, will be announced in March
The new dearness allowance (DA) for central government employees will come into effect from January 1, 2025. However, its official announcement will be made in March. Usually the government announces an increase in dearness allowance around Holi.
At present, the rate of DA is 53 percent from July 1, 2024. For changes in dearness allowance, the government first takes approval from the Cabinet, after which the Finance Ministry issues its notification.
Looking at the process so far, it is expected that the 8th Pay Commission may give its recommendations by March 2025, but its implementation will take place in the next financial year.
This means that under the 7th Pay Commission, DA and DR will increase twice in 2025 and once in 2026. After this, when the 8th Pay Commission is implemented, DA will be added to the basic salary.
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