DA Hike 2025 Update: Currently, the wait of lakhs of central employees who have been waiting for DA since the beginning of this year is over. The government is now going to offer the gift of dearness allowance to the employees. It is being estimated that the good news of an increase in dearness allowance may reach the government employees before Holi. Let us now know how much increase is expected in dearness allowance this time and on what basis is this increase decided.
(Dearness Allowance Update) Lakhs of central government employees have been waiting for the 8th Pay Commission for days, which has been announced for January 2025. The 7th Pay Commission is presently active in the nation. The formation of the 8th Pay Commission has been announced by the government, and its processes might begin shortly. The 7th Pay Commission provides for DA/DR to be increased biannually with effect from January 1 and July 1 each year-the adjustment for the first period in 2005 is to be effective from January 1 and could be announced any day before Holi.
Before Holi, a good news is expected for the government employees of the whole country including 16 lakh government employees of Uttar Pradesh (Uttar Pradesh Government). News is abuzz that the central government may soon announce an increase in Dearness Allowance. If this happens, lakhs of employees and pensioners will directly benefit. Although there is no official announcement from the government so far, it is expected that this can be confirmed in the first or second week of March.
Last Year Also Got A Gift Before Holi
Also, just last year, right before Holi, the increase in dearness allowance (DA increase) was given as a gift to the government employees. This is expected to happen this time as well. As Holi this year falls on March 14, it is expected that the Modi government may announce the increase in dearness allowance just before that date. Along with this, there could be an increase in the Dearness Relief (DR) and this would raise the pensions of pensioners.
How Is Dearness Allowance Given?
The increase in DA is decided based on the All India Consumer Price Index for Industrial Workers (AICPIN-IW). This index speaks about the level of inflation and prices of consumer goods in the country. The government, with regard to the increase in DA, considers the six-month average of this index.
How Much Can Dearness Allowance Increase This Time?
According to the figures from the Labor Bureau, December 2024 recorded an impressive CPI-IW number of 143.7. Therefore, speculation has it that the height of increase in DA may be about 2 base points above the old figures. Earlier, the speculation was that the figure would be increased up to around 3 percent, but now the adjacent estimates hover around 2 percent.
How Much Would Be Given As Their DA Hike?
In the event of a 2 percent increase by the government, the allowance would move up from the current dearness allowance level of 53.98 to 55.98. This will reflect an increase in the salaries of government employees and thus an increase in the pensions of government pensioners.
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