7th Pay Commission – DA hike likely to grant 2% to 3% ? how dearness allowance calculated

7th Pay Commission: If you are a central government employee, this news will prove helpful for you. Before Holi next week, the government can increase dearness allowance and dearness relief for employees and pensioners. According to media reports, before Holi, there can be an increase of up to 2% in dearness allowance.

This increase in dearness allowance will be done under the salary of January-June 2025. Let us tell you that the DA of central employees is increased twice a year by the government. If there is an increase of 2% in dearness allowance, then 1.2 crore central government employees and pensioners will benefit.

If there is an increase in dearness allowance before Holi, it will be effective from January. It is often seen that there is an increase in dearness allowance and dearness relief around Holi in March. So that the employees can get relief before the festival, on the other hand, the increase in July is usually announced around Diwali in October or November every year.

It is worth noting that during the recent meeting held in Delhi, the Cabinet did not discuss the increase in dearness allowance for central government employees. The most recent increase in DA was in July 2024, when it was increased from 50% to 53%. On March 7, 2024, the Cabinet increased the DA from the previous rate of 46% to 50% of the basic salary.

How much will be the increase?

It is being claimed in the media report that before Holi, the DA of the employees can be increased by up to 2%. With this, the dearness allowance of central employees can be increased from 53% to 55%. However, PM Modi will make the final decision during the cabinet meeting.

This time, the festival of Holi will be celebrated on March 14, 2025. Therefore, it is said that the government will announce it soon. Last time, in October 2024, the DA of central employees increased by 3%. It was made effective from July 1, 2024, and then it increased from 50% to 53%.

How is the dearness allowance calculated?
The increase in dearness allowance and dearness relief is decided based on the percentage increase in the 12-month average of the All India Consumer Price Index till June 2022. The central government revises the allowances every year on January 1 and July 1. In the year 2006, the Central Government changed the formula for the calculation of dearness allowance and dearness relief for central government employees and pensioners.