DA Hike News: The announcement for modifying rates of dearness allowance would be expected around Holi since it will be applicable from January 2025, which means some arrears of 2 months would also be provided. This would be under the 7th Pay Commission.
7th Pay Commission : On the one hand, whereas the Modi government at the Centre in Parliament has clearly refused to pay the pending DA arrears for 18 months, on the other hand, now the central employees and pensioners await the dearness allowance hike, which is to be increased from January 2025. In fact, twice a year, the central government revises the rate of dearness allowance and dearness relief for central employees and pensioners taking the half-yearly data of the All India Consumer Price Index. The increase every year happens in January or July and is announced around March or October.
How Much Percent Will Dearness Allowance Be Increased From January?
Expected enhancement in Dearness Allowance shall be made from January 2025 based on the half-yearly data of AICPI index from July to December 2024. The way AICPI Index from July to November has recorded score 144.5 and DA score 55.05%, one is certain; DA is likely to increase by 3%. However, this increase in AICPI for December 2024 is still awaited. After this, the procedure will take place to fix the percentage of DA increase from January 2025. It is speculated that the new rates will be announced around Holi, since it will be applicable from January 2025, in which case some amount of 2 months’ arrears would be given with this increase under the 7th Pay Commission. This would benefit 48 lakh central employees and 69 lakh pensioners.
Will Salary Increase On DA Hike?
- An increase in DA and DR is computed through a percentage increase in the 12-month average of the All India Consumer Price Index (CPI-IW) factor for industrial workers. Generally, the government chooses to revise these allowances on January 1 and July 1 of every calendar year.
- For central government employees, the DA is, thus: DA% = [Average AICPI (Base Year 2001 = 100) for last 12 months – 115.76)/115.76] x 100
- For public sector employees, it is: DA% = [Average AICPI (Base Year 2001 = 100) for last 3 months – 126.33)/126.33] x 100.
- The DA increase for an employee who earns a minimum wage of Rs 18,000 will amount to Rs 540 for a 3% hike; workers earning a ceiling salary of Rs 2,50,000 will be getting a hike of Rs 7,500.
- If an employee has Rs. 15,000 of dearness allowance, then it will be Rs. 15,450. The extra Rs. 450 a month will be beneficial for pensioners too, who will see their pensions rise from Rs. 270 to Rs. 3,750.
Will Something Be Paid Regarding DA Arrears For 18 Months, Or Not?
- The Central government under Modi has again clarified its position regarding the 18-month DA arrears which were halted during the Corona pandemic. In a recent parliamentary session, Minister of State for Finance Pankaj Chaudhary has rejected the payment of 18 months DA arrears, bringing shockwaves among 48 lakh central employees and 67 lakh pensioners.
- If pending DA arrears from July 2020 to January 2021 are given then therefore DA of employees of Level-1 will lie from Rs. 11,880 to Rs. 37,554.
- If it is considered for Levels 13 (7TH CPC Basic Pay Scale Rs. 1,23,100 to Rs. 2,15,900) or 14, an employee may be entitled to payouts ranging between Rs. 1,44,200 and Rs. 2,18,200.
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