This news about the increase in Dearness Allowance (DA) is likely coming in real soon, which will make 7.5 lakh (750,000) government employees in this country glad. The report says the increase is on account of inflation-induced price rises to the government; now, this very almost guarantees that salary increases would meet the cost of living for all employees while this benefits the active employee. The benefit also extends to the retired employee with Dearness Relief (DR).
Hike Before Holi In 2025 Expected In DA
Usually, the government announces DA twice a year-in January and July. Changes are made according to the All India Consumer Price Index (AICPI). As per reports, the next hike in DA will touch a range between 3% and 4%, increasing DA to a total of 50% or above. If it does work, then another feather would be to their financial cap.
How Does The DA Hike Affect The Salary?
- A 4% increase in DA will again pay an employee having a basic salary of about **₹18,000** something close to ₹720 every month and an annual value of ₹8,640.
- Similarly, a 4% hike in DA for an employee with basic pay of ₹56,900 would mean adding ₹2,276 per month, translating it into an annual increment of ₹27,312.
- Thus, even the pensioners would benefit, as adjustments to the Dearness Relief (DR) would take into account the increased Dearness Allowance (DA).
Who Is Going To benefit This Time By DA Increase?
This DA hike is probably applicable to:
- Central government employees under the scheme of the 7th Pay Commission.
- State government employees who also follow the central DA structure.
- Pensioners who receive their monthly pension with Dearness Relief (DR).
When Will DA Hike Be Announced?
Expectation is that before Holi 2025, formal announcement could also be made which would be auspiciously inauspicious monetary excitement to the government employees. The Union Cabinet along with the Prime Minister is expected to clear the hike in DA in March applicable from January 2025.
Conclusion
If that is cleared by the government to increase DA, it will then prove to be an instrument for an enormous wage increase for 7.5 lakh employees and pensioners. Inflation does not leave daily expenses unaffected, thus making importance of this hike as the cost-to-come rises. The eagerly awaiting employees wait for official news soon on this matter. Keep watching for more updates on the DA hike for 2025.
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