DA Hike 2025: The rates of DA/DR of Central Government employees and pensioners are revised twice a year by the Central Government depending upon the half-yearly data of AICPI index.
7th Pay Commission DA Hike 2025: There is good news for one crore central employees and pensioners. Dearness allowance is going to increase once again in the new year. However, how much DA will increase will depend on the half-yearly data of the AICPI index. More than 50 lakh employees and more than 65 lakh pensioners will get the benefit of this by the central government. This increase will be done under the 7th Pay Commission.
Talking about the July to September data released by the Labor Department, the AICPI Index has reached 141.5 and the DA score has reached 54.49%, although the figures for October, November and December are yet to come. After this it will be decided how much DA will increase. If the index reaches 144-145 points by December 2024 and the DA score is more than 55%, then there is bound to be a 3 percent increase in DA. However, the final decision has to be taken by the Modi government.
Dearness Allowance will increase from January 2025
Actually, the Central Government revises the rates of DA/DR of central employees and pensioners twice a year, which depends on the half-yearly data of the AICPI index. This increase takes place from January/July. DA was increased by 4% from January 2024 and 3% in July, after which DA has become 53%.
Now the next DA is to be increased from January 2025, which will depend on the half-yearly data of the AICPI index. If we look at the data so far, DA can increase by 3% again in the new year, since the new rates will be applicable from January 2025, in such a situation, the benefit of arrears is also expected. If sources are to be believed, Prime Minister Narendra Modi can announce it anytime before or after the budget.
This is how dearness allowance will be calculated
The increase in DA and DR is calculated based on the percentage increase in the 12-month average of the All India Consumer Price Index (CPI-IW) for industrial workers. The government usually revises these allowances on 1 January and 1 July every year.
DA is calculated like this for central government employees- DA% = [(Average of AICPI (Base Year 2001 = 100) for the last 12 months – 115.76)/115.76] x 100
DA is calculated like this for public sector employees- DA% = [(Average of AICPI (Base Year 2001 = 100) for the last 3 months – 126.33)/126.33] x 100
