The rates of Dearness Allowance and Dearness Relief of Central Government employees and pensioners are revised twice every year by the Central Government depending upon the half-yearly figures of the All India Consumer Price Index.
7th Pay Commission DA Hike 2025 : Like 2024, the new year 2025 is going to be full of gifts for central employees and pensioners, because from January 2025, once again the dearness allowance of employees and pensioners will increase. However, how much the DA will increase will depend on the half-yearly data of AICPI. So far the figures from July to October have come but the figures for November December are yet to come, after which the situation will be clear.
Actually, the central government revises the rates of dearness allowance and dearness relief of central employees and pensioners twice every year, which depends on the half-yearly data of the All India Consumer Price Index. This increase is done every year from January/July. Talking about the year 2024, DA was increased by 4% from January 2024 and 3% from July, after which DA has become 53%, now the next increase is to be done from January 2024, which is likely to be announced after Budget 2025-26.
DA Hike 2025: By how much percent will dearness allowance increase?
Currently, 48 lakh central employees and 68 lakh pensioners are getting the benefit of 53% DA. Now the next DA is to be increased from January 2025, which will depend on the AICPI index data from July to December 2024.
If we look at the data from July to October, the AICPI Index score has reached 144.5 and the DA score is 55.05%, in such a situation, there is a 3% increase in DA, although the figures for November-December are yet to come.
The November figures will be released by the Ministry of Labor on December 31 and the December figures will be released on January 30, 2025, after which it will be decided how much percent DA will increase.
It is estimated that there may be an increase of 3 to 4 percent from January 2025. It may be announced around Holi in March. This increase will be done under the 7th Pay Commission.
For example, employees earning a minimum salary of Rs 18,000 will get an increase of Rs 540 on a 3% DA hike, while those earning a maximum salary of Rs 2,50,000 will get an increase of Rs 7,500. Pensioners will also benefit from this, whose pension can increase by Rs 270 to Rs 3,750.
This is how dearness allowance is 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
