DA Hike Update – Central Government Employees to Get 4% Increase in Dearness Allowance

The central government has confirmed an increase of 4% in Dearness Allowance (DA) for its employees and pensioners. This revision, effective from January 1, 2025, is based on the All India Consumer Price Index (AICPI) data. The official announcement is expected to be made in March 2025, after which employees will receive the revised DA along with arrears.

Role of AICPI in DA Calculation

The All India Consumer Price Index (AICPI) plays a crucial role in determining DA revisions. Under the 7th Pay Commission, DA is calculated based on inflation trends reflected in AICPI data. The average of the last six months’ index values confirms the 4% hike in DA.

Impact of the 4% DA Hike

The 4% increase in DA will bring financial relief to central government employees and pensioners. This increment is significant as it directly affects their salaries and pensions.

Salary and Pension Growth After DA Hike

• DA is calculated as a percentage of the basic salary.
• Currently, employees with a minimum basic salary of ₹18,000 receive 53% DA, which amounts to ₹9,540.
• After the DA hike to 57%, the amount will increase to ₹10,260, giving an additional ₹720 per month.
• Higher salary slabs will see a proportionate increase in their earnings.

Official Announcement in March 2025

The government typically announces DA revisions in March and October every year. This time as well, the official notification is expected in March 2025. Once declared, the revised DA will be credited with arrears from January 2025 onwards.

Conclusion

The 4% increase in DA is a welcome move for central government employees and pensioners, helping them cope with inflation. The hike will improve financial security and boost disposable income. The official announcement in March 2025 will confirm the final details, ensuring timely payments along with arrears.