DA Hike 2025: It is said that by the outset of 2025, there could be some good news for central government employees, as well as pensioners. As part of the government’s expectation to increase Dearness Allowance (DA) by 3%, possibly by raising the existing level of 53% DA to 56%.
Latest Figures Of AICPI Index
According to the All India Consumer Price Index (AICPI), the figure of 144.5 has not altered till November 2024. If no meaningful change about December 2024 figure appears, then there is a strong possibility of running into the 3% increase in DA with effect from January 2025.
Effect On Salary And Pension
The three percent hike in dearness allowance will benefit employees and pensioners directly regarding salary and pension. Some instances are there, currently a minimum wage of ₹18,000 gets DA of ₹9,540 and will now increase to ₹10,080, resulting in a monthly increase of ₹540. Similarly, a basic wage of ₹56,100 will have DA raised from ₹29,733 toward ₹31,416, which could run into a monthly increase of about ₹1,683.
DA Hike Calculation Measuring System
Dearness Allowance is based entirely on the All India Consumer Price Index (AICPI). The government revises the Dearness allowances two times a year, in January and July, on average of last six months’ AICPI data. Currently as of November 2024, Dearness Allowance arrives at 55.54% and very likely shoots up to 56%.
Official Announcement And Timeline
The announcement of the new Dearness Allowance rates, which is likely to take effect from January 2025, will likely be made by the government by March 2025. Those covered for this DA increase would expect the benefits to accrue to them from April 2025, with applicable arrears as well.
Reaction Of State Governments
Along the lines of an increase announced by the Central government, the government of Uttar Pradesh is also gearing up to announce the DA hike for its employees. The Personnel and Finance Department has been instructed by the state government to prepare and forward the proposal to the Cabinet for approval shortly after the announcement by the Centre, benefiting nearly 28 lakh employees and pensioners of the state.
Conclusion
The proposed 3% increase in dearness allowance will benefit both central and state employees, as well as pensioners. It will increase the paying capacity of employees and pensioners, given that they and their families will use this extra money for better living conditions. This much-touted initiative of the government will pay off by reducing the impact of inflation.