Da hike: Important information related to dearness allowance of central employees and pensioners has been revealed. DA/DR is expected to increase by 2% from January 2025. After this, dearness allowance will increase from 53 percent to 55 percent. This means that central employees will get the lowest increase in dearness allowance in the last 78 months. DA hike may be approved in the cabinet meeting to be held on Wednesday. But why is this happening? Because according to the AICPI index, dearness allowance should be 56 percent. Still, why is there a matter of two percent increase?
Why will the dearness allow only 2% increase?
After the release of the All India Consumer Price Index (CPI-IW), it has been decided that DA/DR will increase by 2% from January 2025. The AICPI-IW for December 2024 was 143.7, causing the DA calculation to 55.98%. However, according to government rules, the number after decimal is not added, so it will be increased from 53% to 55%.
This will be the first time in 78 months.
In the last few years, dearness allowance has increased at a rate of 3 or 4 percent. But for the first time in 78 months (6 and a half years), DA will increase by only 2%. Earlier in the year 2018, dearness allowance was increased by 2 percent. Since then it has increased by only 3 or 4 percent continuously. This news is a major setback for central employees. In fact, the more the dearness allowance increases before the new Pay Commission is implemented, the more benefit the employees will benefit. However, now the 8th Pay Commission has been announced and soon after the announcement, there is news of an increase of only 2% in dearness allowance.
What will be the impact of an increase in dearness allowance?
If the basic salary of an employee is Rs 50,000, then after an increase of 2%, his DA will increase in this way.
| Basic pay | First D.A. (53%) | New DA (55%) | Growth (2%) |
|---|---|---|---|
| ₹ 50,000 | ₹ 26,500 | ₹ 27,500 | ₹ 1,000 |
| ₹ 70,000 | ₹ 37,100 | ₹ 38,500 | ₹ 1,400 |
| ₹ 1,00,000 | ₹ 53,000 | ₹ 55,000 | ₹ 2,000 |
Will it be approved in the cabinet meeting?
According to sources, this proposal may be approved in the cabinet meeting to be held on Wednesday (March 19). The government usually approves dearness allowance in March every year, which gives employees the benefit of arrears with the retrospective impact. This means that the money of January and February will be added as arrears.
Has 3% hope ended?
If we look at government figures, then the expectation of 3% is now over. If we look at the AICPI-IW data in December 2024, the dearness allowance has reached 55.98 percent. Generally, in such a situation the government should consider it 56 percent. However, it is being limited to 55 percent due to not adding points after the decimal point. However, even before this, the government used to increase the amount according to the future value in such cases. But only 2% increase in the current situation is expected from January 2025.
Will I get the outstanding amount?
The government will issue a formal order for DA hike in March 2025, which will be implemented from January 2025. Employees will get the benefit of increased dearness allowance along with March salary and will also get two months arrears. Pensioners will also get its benefit.
