For Central Employees: Seventh Pay Commission: The good news will arrive for employees in the central government and for pensioners; they must be ready very soon to hear the declaration regarding the increase in dearness allowance. Such increases relate to the domain covered by the 7th Pay Commission, and it is expected that lakhs of employees will enjoy this benefit. “Currently, the central employees get 53% dearness allowance which came into effect in October 2024. This was due to a 3% increase. Now, another one is expected in March 2025 effective from January 1, 2025.”
Effect Of Possible Increase
Analysts are opining that probably this time the dearness allowance hike would be in the range of 3-4 percent. In case of an increase by 3 percent, this means that the monthly income for an employee whose basic salary is Rs 18,000 will get increased by Rs 540. With a 4 percent increase, it can go as high as Rs 720.
Base For Increase
The formula for determining the dearness allowance will be taken from the “All India Consumer Price Index, using averaging of 12 months’ AICPI figures”. The governing body usually announces change in DA rates during March and September.
8th Pay Commission
The government has basically approved the formation of the 8th Pay Commission. The 7th Pay Commission is valid up to December 31, 2025, while the new Pay Commission is likely to take off from January 1, 2026. However, the terms and members are yet to be defined.
Importance For Employees:
Actually speaking, to the employees, it would be much more significant as it eases the cost of living with inflation. The announcement would perhaps coincide with Holi and, therefore, be yet another cause for cheer during the festive season.
Also Read: DA Hike Update: DA Increased By 7%, Not 3 Or 4, Big Announcement For Employees