Update big dear allowances for 1.2 crore central government employees in the country. While the data from All India Consumer Price Index (AICPI) have confirmed the increase in dearness allowance, big news is there is an announcement concerning the same. The December figures (143.7) have cleared the way for an increase in dearness allowance (DA Hike) for employees.
How Much DA Is Being Received At Present
Currently, Central government employees receive DA at a rate of 53 percent. Counting dearness allowance every six months is done by the central government, based on the All India Consumer Price Index. DA at January 1, 2025, will be reexamined based on the All India Consumer Price Index for July to December 2024; this will be announced by Holi. Employees hope that the announcement about an increase in dearness allowance would come by 12 March, that is, two days before Holi on 14 March.
DA Is Revised Every Six Months
Every six months such dearness allowance are revised for the central employees. As the inflation rates increase, an employee gets dearness allowance according to his basic pay. The inflation rate of that month is computed based on an average of the AICPI’s values during that respective month. At the end of six months, it is subject to revision when the data are released.
Till December Data Confirms Increase
The increase in dearness allowance has been confirmed because data from the All India Consumer Price Index (AICPI) has been released till December. In July, this figure was at 142.7, in August, it was at 142.6, in September, it was at 143.3, in October, it was 144.5, and in November, this figure was also at 144.5. Finally, in December, it was at 143.7, which gives the following inflation rates: July-53.64, August-53.95, December-54.49, October-55.05, November-55.54, December-55.99.
DA Is To Be Increased By 3% Point
Central government employees are in receipt of an amount of 53 percent DA as prevailing. The increase of about 3 percent is already confirmed from the figures till December. November has seen a rise of .49 in inflation rates. Although the same has seen a 0.44 percent increase in December. The inflation rate is now at 55.99 percent, but will only be considered at 56 percent since if the figure reaches beyond 0.50, only the upper figure is counted.
These employees are currently drawing a minimum basic salary of Rs. 18000. Presently they are getting Rs. 9,540 extra under the 53 percent DA. However, this would be Rs. 10080 as DA along with salary in the case of 56 percent DA. In contrast, for a person drawing a basic salary of 19900, the dearness allowance would be Rs. 11,144 at the rate of 56 percent. However, such a person who earns a basic salary of 29200 will calculate Rs. 16,352 as dearness allowance.
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