Da hike update: New information has been revealed about dearness allowance (DA) for central government employees, which can cause a major setback to both employees and pensioners. According to the recent update, the DA amendment to be held in July 2025 is likely to increase only a slight increase.
Recent change in inflation relief and allowance: The central government recently announced a 2 per cent increase in DA and inflation relief (DR) for about 1.2 crore central employees and pensioners. However, this growth was the lowest in the last 78 months. Now the upcoming DA amendment is expected to increase less or zero increase.
Due to limited increase in DA: The All India Consumer Price Index for Industrial Workers (AICPI-IW) has declined during the first two months of 2025. In February 2025, the index fell 0.4 points to 142.8, compared to 143.2 in January. CPI -based retail inflation has also fallen to a five -year low of 3.34 percent in March 2025. Given these figures, the growth rate of DA can be very limited in the coming months.
How is the calculation of DA hike: DA is calculated based on the AICPI-IW index. This calculation is based on the average CPI-IW of the last 12 months:
DA = (The average of CPI-IW of the last 12 months x 2.88-261.4) × 100 / 261.4
The formula has been determined by the 7th Pay Commission, with the base index 261.4.
Pensioners’ concern increased: The next DA amendment to be held in July 2025 can be quite a minor impact on the salary of the employees and the monthly pension of pensioners. DA is an important part of their monthly salary and allowances, so this situation has become a matter of concern for them.
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The post da hike update: A big shock to central employees, in July 2025, there may be a slight increase in dearness allowance first appeared on News India Live | Breaking India News, The Indian Headline, India Express News, Fast India News.
