Good news for millions of employees in the government and pensioners since the announcement regarding the increase in Dearness Allowance (DA) in 2025 is expected soon. This will probably happen as the central government will plan to increase it. Various reports indicate that DA is likely to be increased by 4 percent just ahead of Holi, which would only add more fuel to the fire. This increase is largely going to be based on the All India Consumer Price Index (AICPI) as the calculations in DA are based mainly on inflation and cost of living trends.
Expected DA Rise For 2025
As of this writing, central government employees receive “46% DA” fixed according to the last revision in 2024, thus seeing an upturn to 50% with further inflation and cost-of-living hike anticipated. The total DA hike will mean big money for employees’ monthly salaries and an equal upward hike in the pensions of pensioners.
Implications Of Increase In DA To 50%
- Whenever the DA crosses this 50% threshold, indirect allowances like House Rent Allowance (HRA), Travel Allowance (TA), etc., shall also be readjusted.
- With the perk enhancements, these enhancements go on automatically on a DA basis.
- The pensioners will also reap the benefits of increase in their Dearness Relief (DR), which is equivalent to DA for the retirees.
DA Calculation
DA is revised twice in a calendar year, in January and July, chiefly on the basis of inflation rates and AICPI data. The computation of DA is done according to the formula as given below:
DA (%) = [(AICPI average – 115.76) / 115.76] × 100
With soaring inflation rates, a 4% or higher increase in DA shall be expected, probably before Holi-2025.
Who Will Get Benefited by the DA Hike?-Effects
- The same shall work for Central Government employees as per 7th Pay Commission.
- Pensioners, who will be relieved from DA about Dearness Relief (DR).
- Public sector employees will then avail the DA hike through corresponding orders of their organization.
- Employees of State Government which follow a similar pattern in DA.
When DA Hike Will Be Announced By The Government?
So the announcement should be made before Holi, in early March 2025, and that would indicate that the revised salary would be paid by the next month itself. The ultimate decision with regard to the final figure of DA hike will be vested with the Union Cabinet.under the Prime Minister’s chairmanship.
Conclusion
Riding on the abovementioned DA implementation within the year 2025, financial relief is thought to be arriving soon for Government employees and pensioners. With an expected 4% increase, salaries and pensions will go up, thus helping millions face inflation and survival. Due for a final governmental announcement very soon, the news should start the joyous celebrations with employees throughout the country, given that Holi is at their doorsteps.
Also Read: Big Update On 18-Month DA Arrears For Central Govt Employees: Here’s How To Claim