Soon it would be new year for the employees, and indeed, great news for them. DA will be increased from January 1. An increase in DA percentage which would be calculated on the basic salaries of salary-drawing employees would be given benefit under the Seventh Pay Commission (7th Pay Commission DA update). The salaries are poised to reach new highs with expectation.
DA is calculated twice in a year by the Central Government; one in January, while the second would be in July. The AICPI figures would be the center of all calculations regarding the revision of dearness allowance. Government thereafter announces the increase in DA on the basis of the average AICPI of 12 months. The net resultant of all this is that an employee is relieved by several wafts of inflation while his salary also increases at times.
Below is the day when the dear allowance is probably announced:
The salary of employees and pensioners is increased twice a year by the Central Government. The first increase is from January to June; the second is from July to December. A calculation of the final figure of DA hike is usually performed by the government every six months on the basis of data from AICPIN (All-India Consumer Price Index – AICPIN). The AICPIN data between July and December would be out, and the government will announce the next DA hike after doing the final calculation.
These figures of AICPIN are awaited
As of now, the government is in possession of data for AICPIN: July-October 2024. It needs November and December data too before it will increase the DA. This December figure if released is expected to be released with the February 2025 figure (january 2025 me kitna DA Hike hoga). Thus the DA increase has to be announced after that by the government.
DA was increased in July
DA was increased from July to December from Central Government. Which (DA hike) released in October. It is believed now that the government would announce it with the next increase in DA. March 2025 is expected as the date for the next announcement. The Central Government had increased the dearness allowance by 4 percent on March 6 this year. Due to which the basic salary of the employees was also increased. After this, it was also increased by 3 percent in October, after which DA increased to 53 percent.
DA can be increased by this much in January
DA increases by the Central Government on AICPIN basis alone. Talking about the AICPIN index till October 2024, the AICPIN index had reached 144.5 in October as per which the dearness allowance can rise up to 55.05 percent. It is believed that the AICPIN (AICPIN Index Update) index has the potential of reaching 145.3 in November and December. According to which, dearness allowance can increase from 53 percent to 56 percent in January 2025, that is, now there can be an increase of 3 percent more.
Also added are big increases in base compensation
In January 2025, if the government raises the employees’ DA by 3 percent, then this would lead to an increase of Rs 540 (Minimum Salary Hike) in their basic salary. Central employees currently have a basic monthly division of Rs 18000, with the amount of Rs 270 expected for the pensioners, as they are believed to be under this scheme. The minimum central government pension is currently Rs.9,000.
Pensioners will also benefit
In the Seventh Pay Commission, the maximum amount paid to government employees was paid Rs 2,50,000. Similarly, the maximum pension (basic pension hike) may be pursued up to Rs 125,000. On the other hand, if the DA increases by 3 percent, it is going to open receiving streams for serving employees and pensioners.
Know when the 8th Pay Commission is coming into force
Currently, employees believe the 8th Pay Commission may be set up from January 1, 2026, onwards. If you see the previous pattern, the Central Government pays a pay commission to its employees every ten years. Based on that, it is expected that next Pay Commission would be effective from January 1, 2026.
