Big update revealed regarding 8th Pay Commission. As the 8th Pay Commission is taking shape, employees are becoming increasingly curious about the developments. In the meantime, a report suggests that central government employees might see a rise in their Dearness Allowance (DA) this month. Typically, the government announces the DA increase in March, which is retroactive to January 1 of that year.
Current DA situation and potential increase
At present, the DA for central government employees stands at 53% of their basic salary. Recent reports indicate that it could go up by 2%, bringing the DA to 55%. This potential increase aligns with the recommendations made by the 7th Pay Commission.
Breaking down the DA calculation
The central government determines the DA rate based on the All India Consumer Price Index for Industrial Workers (AICPI-IW), which is published by the Labour Bureau in Shimla. The latest AICPI-IW data for December 2024 shows a 0.8% drop to 143.7. This decline in the Consumer Price Index for Industrial Workers could impact the DA calculation, possibly limiting the increase.
Employee unions’ expectations
Central government employee representatives have also indicated that a 2% DA hike is likely. Rupak Sarkar, president of the Confederation of Central Government Employees and Workers, mentioned that their internal assessments reflect the same expectation. Additionally, Shiv Gopal Mishra, secretary of NC-JCM (Staff Side), has stated that the chances of a 2% DA increase are quite promising.
The final call on the DA hike will be made by the Union Cabinet, led by Prime Minister Narendra Modi. Once approved, the new DA rate is expected to take effect from January 1, 2025.
Current DA rate: 53% of basic pay
Potential increase: 55% with a 2% rise
Effective Date: January 1, 2025
Decision-making body: Union Cabinet.