The DA increase expected just before Holi will be an additional icing on the salary-aweary face of government employees. Under the revision regime of the Central Government, the DA gets revised twice a year on the basis of All India Consumer Price Index (AICPI) so that employees can tackle rising inflation. This expected revision is certainly a something which lakhs of employees and pensioners are looking forward to.
Expected DA Increase In 2025
The recommendation for 2 to 3% increment in Dearness Allowance is fairly anticipated at this date. Currently, DA received by central government employees stands at 46% of their basic salary. If increased, the DA percentage would rise to 48% or 49%. This amount is to be paid directly in salaries to government employees and in the pension of the retired persons.
How Salary Goes Up With DA?
The DA is calculated as a percentage of the basic salary. Here is how it is going to affect them:
Example Of Salary Calculation (Basic Pay ₹18,000)
Assuming the current DA is 46% and if someone’s basic pay is ₹18,000, then the DA payable to the person would be:
- 46% of ₹18,000 = ₹8,280
- Now we take a situation, for the sake of this example, explaining that the rise in DA has taken place to 48%:
- 48% of ₹18,000 = ₹8,64
- DA increase=₹8,640 to ₹8,280=₹360 per month
- Annual increase= ₹360×12=₹4,320
Method Of Computation In Case DA Goes To 49%:
- 49% of ₹18,000=₹8,820
- DA increase=₹8,820-₹8,280=₹540 per month
- Annual increase=₹540×12=₹6,480
The impact on higher salaries would see an even bigger increase based on the new DA rate.
The Pensioners
This adjustment in Dearness Allowance will similarly affect the pensioners on the side of their basic pension. In the case of a retired employee who gets a pension of ₹20,000:
- 2% DA hike→₹400 more per month
- 3% DA hike→₹600 more per month
Expected Timing Of DA Hike Announcement
Formally, an announcement may be made in or around March 2025, a little before Holi. Accordingly, the increased allowance will take effect from January 2025 with spontaneous DA arrears for the two months.
This DA upgrade will come to offer a kind of life for over a crore of these government employees and pensioners trying to cope with inflation. Everyone shall keep their eyes glued to the government circular!
Also Read: Universal Pension Scheme: New Initiative Of The Central Govt, These People Will Get Pension