New year will bring good news to the central employees. Salary of employees will also go up in amount Rs 1683 per month with the increase of dearness allowance. This will give some relief to the employees from the cash flow during inflation. This will also benefit pensioners. Basic salary received under 7th Pay Commission (7th Pay Commission DA hike) works toward increasing the salary of the employee.
Depending on All India Consumer Price Index (AICPI), Dearness allowance is paid. These data are the basis of the bumper rise of salary in the employees. This has been released every month.
Then comes an amendment in dearness allowance on the average of the six months. Now the trends showing the present increases in salary under the 7th Pay Commission clearly tend to indicate that there shall be an increase in dearness allowance. Let us know what the figures say.
DA may increase by 3 percent
2025 starts with a fresh good news for the employees. There are indications of an increase in Dearness Allowance this time as well. Going by the AICPI data up to October 2024 for revision of DA of employees, 56 percent with an increase of three percent is the figure for dearness allowance.
Waiting for two months’ data
The data of AICPI index play a very important role in increasing DA allowances. This is basis for increasing DA allowances (DA hiked latest Update). The figures for November and December are yet to come. After the release of these two months figures, it is possible that DA may also go up by 4 percent.
How dearness allowance increases
There are AICPI month-to-month bases calculation under which additions in average 6 months have to be done. At this point, giving weightage to July to December data would lead to average consideration under these calculations. The index of September had stood at 143.3 AICPI points while the index of October was 144.5 points.
Referring to the above AICPI data, the consideration goes above 55 percent. The figures of November and December are pending. On this basis, it will get finalized. Presently, estimates are coming up with a figure close to 56-57 percent.
When will be the date of release for the two-month figures?
The AICPI index figures pertaining to November and December had been expected to publish by 31 December. However, the release of such figures still remains pending. Now it is believed that the AICPI index data for January 31, November, and December would be released. After that, dearness allowance (DA Hike Update) will be done on the basic salary received under 7th Pay Commission.
This is how the fee structure will increase with dear allowance
Currently it is being projected that dearness allowances may rise up to 56 percent. This means that 56 percent DA will be applicable on the minimum basic salary of Rs 18,000, which is what the 7th Pay Commission recommends for serving government employees. So far, a dearness allowance of 53 percent has been given and so it was Rs 9,540 with 53 percent DA. If it is converted at 56 percent, it gets converted to Rs 10 thousand 80 on 18 thousand. That is, there will be an increase of at least Rs 540 per month.
Similarly, at a basic pay of Rs 56 thousand 100, according to 53 percent, the dearness allowance (DA Hike) amounts to Rs 29 thousand 733. On the other hand, if the DA is pegged at 56 percent, it would rise to Rs 31 thousand 416. This means that there is an increase of at least 1,683 rupees directly per month. The same value will also add to the pension.
When it will be dearness allowance
The dearness allowance (DA Update) is revised two times in a year. This means that it is effective from the beginning period of January to end of June and from July to December. Mostly it is done somewhere in the months of March and October. Its first half will be announced in March and the second in October. So now, it may establish that the dearness allowance applies from 1 st January, 2025, and this is likely to be announced in March.
