DA Hike Salary- Big news for central government employees. Keeping in view the inflation rate, the Central Government revises the rates of dearness allowance and dearness relief for central employees and pensioners twice every year in January and July, which depends on the half-yearly data of the All India Consumer Price Index. These figures are released every year between January to June and July to December. The figures from January to June have been released. In this, the half-yearly CPI-IW average score has reached 146.3 and DA score around 58.18% which is indicating a 3% increase, in such a situation, DA is expected to increase from 55% to 58%.
Arrears will also be available from July 2025
Since this increase will be considered effective from July 2025, the central government employees and pensioners will also get arrears of three months of July, August and September in the salary and pension of October. It is likely that the Modi government at the Center can announce the new rates of DA in the cabinet meeting to be held before Diwali, after getting approval from here, the orders of the Finance Department will be issued.
How much will salary and pension increase?
If an employee’s basic salary is Rs 18,000 (minimum basic salary as per 7th Pay Commission), then 58% DA will give a benefit of Rs 10,440 per annum. If an employee’s basic salary is Rs 50,000, then at the rate of 58% DA he will get Rs 29,000. That means he will get Rs 1,500 more every month.
If someone’s basic pension is Rs 20,000, then there will be an increase of about Rs 600. If a pensioner’s basic pension is Rs 30,000, then at the rate of 58% it will be Rs 17,400. That is, they will get Rs 900 more every month.
Let us know how dearness allowance is calculated
There is a formula to calculate the dearness allowance of central government employees and pensioners. The formula is: 7th CPC DA% = [{12-month average of AICPI-IW (base year 2001=100) for the last 12 months – 261.42}/261.42×100]
This formula will be applicable to those central government employees and pensioners who get salary based on the recommendations of the Seventh Pay Commission. DA%= (392.83-261.42)/261.42×100 = 50.26
The average CPI-IW for the last 12 months is 392.83. According to the formula, DA is coming to 50.28% of the basic salary. Therefore, the central government can increase the dearness allowance by up to 50% (ignoring decimal points).
