Hike in Dearness Allowance: The central government is likely to come up with an announcement regarding an increase in the dearness allowance for both its employees and pensioners soon. Also, just before the festival of Holi, i.e., before March 14, 2025, this announcement is expected. The hike would come under the 7th Pay Commission and will make the financial condition of employees better. So, at present, central employees are getting a dear-ness allowance of 53 percent, which came into effect in October 2024 for an increase of 3 percent. An increase is likely to happen in March 2025, which will be effective as of January 1, 2025.
Effect Of Possible Increase
Employee organizations estimate that this time it may be a 3 to 4 percent hike in dearness allowance. An employee having a basic monthly salary of Rs 18,000 may get an additional Rs 540 on a 3 percent increase and Rs 720 on a 4 percent hike.
Benefits For pensioners:
These dearness allowances will act as part of employee benefits for currently working employees as well as pensioners. It is known as Dearness Relief (DR) for pensioners. More than a crore government employees and pensioners will benefit because of this hike.
Basis For determination
Dearness allowance is determined depending on the All India Consumer Price Index. The government determines these rates on average data over a time range of 12 months, making sure the employee is properly compensated keeping in mind the effects of inflation.
Opportunity Before The Eighth Pay Commission
This will be one of the last hikes so far to be given under the 7th Pay Commission before the 8th Pay Commission. As such, it is expected to provide some sort of solace to the employees from the growing pace of inflation. However, the government has not made an official announcement yet, but this increase is likely to be a big relief for employees and pensioners under the center’s purview. What happens will become clear from the announcement to be made in March 2025.
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