Dearness allowance constitutes a significant portion of employees’ salaries. It helps employees cope with inflation and become very plush with this amount. The dearness allowance among employees is revised for two times a year. This time also, the dearness allowance of the employees (DA Hike in January 2025) is revised.
Good big news awaits in the new year for central employees and pensioners. They have been waiting for the 8th Pay Commission. The employees expect an announcement of the 8th Pay Commission in this budget. But before that, a big change is expected in the update regarding dearness allowance (DA Hike update latest) for employees.
There is going to be an increase in dearness allowance
The dearness allowance is about to give a New Year boon to the employees. According to media report, the government has prepared for it. It is going to announce the increase of dearness allowance in the new year in the month of March. As is the norm, dearness allowance is increased around Holi. This will also benefit the pensioners.
How is dearness allowance calculated
Presently, employees draw graha under the 7th Pay Commission. DA is calculated on the basis of All India Consumer Price Index (AICPI). Its data have been out until October 2024. The data for the month of November-December is still awaited. The figures of All-India Consumer Price Index will come every month and then we will get to know about inflation (DA) from it.
How much will dearness allowance increase
From the data of All India Consumer Price Index till October, there is the probability of an increase of 3 percent in DA in 2025. AICPI was 144.5 points until October. The next figures for November and December are awaited. If this figure remains around 145 in both the months. Accordingly, the dearness allowance January 2025 will increase from 53 percent to 56 percent from January 2025.
Direct Impact on Employees’ Salary
The direct increase in the DA amount will increase the salary of employees. Where the employee used to get 53 percent DA on basic salary (central employees basic salary), now it will become 56 percent. In other words, there would be a direct increase of three percent in DA. The pensioners also get its benefit.
When will DA be declared?
The Dearness allowance is revised twice each year. The first revision comes into effect from January and the second from July. It is revised based on AICPI DA Hike index. It is generally announced in March and October. In 2025, January ADA is likewise expected to be declared in March. This is likely to happen around the time of Holi.
