DA Hike: The government increases DA twice a year. Once in January and second time in July. Last time in October 2024, employees got a hike of 3%.
7th Pay Commission: Central government employees may get good news soon. The government may soon announce an increase in dearness allowance (DA), which will increase the salary. This increase will be under the 7th Pay Commission and crores of employees and pensioners will get its benefit. It is believed that its announcement may be made around Holi in March. However, no official statement has come on this yet.
The government increases DA twice a year. Once in January and second time in July. Last time in October 2024, the employees got a 3% increase, which increased their dearness allowance from 50% to 53%. Now another increase is expected in March 2025, which will be effective from January 1, 2025.
What is the possibility?
If the government increases DA by 3%, then the salary of an employee with a basic salary of Rs 18,000 will increase by Rs 540 per month. On the other hand, if the government increases it by 4%, then this increase can be up to Rs 720 per month.
If the government announces a DA increase in March, then it can be a big gift for government employees before Holi. Now all eyes are on the government’s decision.
Announcement is made in March and September
Dearness allowance is calculated on the basis of All India Consumer Price Index (AICPI). The government changes the DA rate based on the average AICPI of the last 12 months. However, its official announcement is usually made in March and September.
The government has approved the 8th Pay Commission, but its terms and who will be the members have not been decided yet. The tenure of the 7th Pay Commission is till 31 December 2025, and it is believed that the 8th Pay Commission can be implemented from 1 January 2026. However, some reports say that it may take more time to be implemented.
