The time is glee for central governmental employees and pensioners. There are possibilities of increased dearness allowance (DA) before the auspicious Holi. The government increases dearness allowance twice every year- first in March and second in October. This time the first increase will take effect from January 1, 2025, but the formal announcement can be made before Holi, in March 2025. But the government has not confirmed it yet.
How Much Can The Dearness Allowance Increase?
According to the employee’s organizations, this time the dearness allowance can increase between 3-4%. This may mean enhancement of the salary of the employees by Rs 540-720 every month.
- For a 3% increase, taking the basic salary of an employee to be Rs 18,000, the new DA would be Rs 9,540 and thus an increase of Rs 540.
- For a 4% increase, the new DA on this salary will be Rs 9,720, thus providing an increase of Rs 720.
Pensioners Will Also Benefit
DA is given only to the employees and the pensioners are given this facility in the form of Dearness Relief (DR). This time more than one crore government employees and pensioners are benefitting from this increase.
What Determines Dearness Allowance?
Dearness allowance is calculated based on the All India Consumer Price Index (AICPI). The government determines the rates of DA and DR based on the average AICPI data over the last 12 months.
Last DA Hike Before 8th Pay Commission
The 8th Pay Commission is likely to set in in 2026, but before that, two DA hikes will go into place for the benefit of employees under the 7th Pay Commission, thereby being useful in increasing their say remuneration and some relief against inflation. Now all in all the employees await the official announcement by the government in March 2025, which will clarify the hypothetical increase in remuneration.
Also Read: DA Hike 2025: Big Gift To Central Employees Before Holi, DA Will Be Increased