A DA announcement for the federal government employees has been in the wait-list for so long, and here is the moment. The government finally gave the nod for an increase in the DA, providing some respite for lakhs of employees and pensioners. This is a part of the biannual revision to check the inflationary impulse.
New DA Hike Announcement
The central government has announced a 4% hike in Dearness Allowance with effect from January 1, 2025. With this increase, the DA for central employees now stands at 54% from 50%. The hike comes after the consideration by the government of the All India Consumer Price Index (AICPI), which gauges inflation and subsequently dictates the DA percentage adjustment.
Impact: How The DA Hike Will Affect Employees
The revised DA is certainly in favor of the current employees as well as pensioners. Here is what the increase means:
- Increased Take-Home Salary: A perceptible rise in the gross salary will be seen by employees.
- Further Increase in Pensions for Retirees: Further increases would correspond to Dearness Relief (DR) given to the pensioners.
- Good Adjustment for Inflation: The hike enables employees to overcome rising inflation.
How Salary Is Calculated Considering The New DA
For a central employee with basic pay of ₹40,000:
- Old DA (50% of 40,000) = ₹20,000
- New DA (54% of 40,000) = ₹21,600
- Net increase = ₹1,600
Employees having their basic pay on the higher side will similarly benefit from a proportionately higher increase.
When Will Employees Receive The Hike?
The DA hike will be paid in the March 2025 salary, occupying the first two months, January and February, as loose change due.
What’s Next?
As inflation continues to go up, moreover DA hikes are very much foreseeable in the next cycle, which normally happens in July. The government shall keep reviewing AICPI data, considering whether adjustments are further forthcoming.
Conclusion
The newly declared DA hike is a great relief to central government employees and pensioners, which keeps their purchasing power while flooding with inflation. The employees should check for the changes in their last salary statements, confirming new DA months from January and February. Stay tuned for more updates regarding salary hikes and other government decisions ahead.
Also Read: Labour Wages Hike In 2025: Check New Salary Rates And Updates