DA Hike In March: There seems to be good news for nearly one crore employees and pensioners of the Central Government. After a prolonged wait, it is now likely that central employees will receive the increased dearness allowance (DA) from January 2025 Harshes for Holi in March. The government is all set to announce it around this time. Not only will this pay hike benefit employees, but so will lakhs of pensioners. Let’s get into the details of this DA hike.
What Is Dearness Allowance (DA)?
Dearness allowance is an allowance that is paid to government employees to maintain their purchasing power in times of inflation. This dearness allowance is revised, increased, and approved by the government two times a year – from January 1 and July 1. This is based on the All India Consumer Price Index AICPI which measures inflation and other economic factors. This mechanism ensures that no inflation erodes the income of the employees.
When Will The DA Of January 2025 Be Available?
The long-awaited dearness allowance for the central government employees with effect from January 1, 2025 is now on the verge of culmination. Reliable sources inform that it may be announced around Holi in March 2025. The month of February is drawing to a close with the festival of Holi being on the 14th of March; therefore, it is rumoured that DA would be declared before this festival or around that. This announcement would be applicable from the 1st of January, 2025, meaning the employees will also get arrears for January, February, and March.
How Much Can The DA Be Increased?
In the opinion of various employee organizations and experts, the DA can increase by 3-4 percent with effect from January 2025. The central government employees are currently getting 53 percent DA, which was last increased from 50 to 53 percent in October 2024. This time say if there is an increase of 3 percent, then it will become 56 percent DA, and 4 percent will become 57 percent. The government hasn’t come out with any official announcement regarding this yet.
Effect On Salary And Pension And DA
The increase in DA will have a direct bearing on the salary of central employees and on pensions. For example, if an employee’s basic salary is Rs. 18,000, he gets a DA of Rs. 9,540 at the current 53 percent. In case of an increase in DA to 56 percent, he will get Rs. 10,080 DA, an increase of Rs. 540. In case the DA increased to 57 percent, the DA would amount to Rs. 10,260, adding another Rs. 720.
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