A big day is coming for central government employees! The Union Cabinet meeting is scheduled for Wednesday. Looking at last year’s record, the Centre had announced a DA hike before Holi. On March 5, the Narendra Modi government increased DA for its employees. Will central government employees and pensioners get an additional DA hike this time too? In this article, we will share all the important details.
Dearness Allowance for Central Government Employees: Big Update Expected
As per the recommendations of the Seventh Pay Commission, central government employees receive an annual increase in Dearness Allowance (DA) on January 1 and July 1. The official announcement for the January increase is typically made in March, while the July increase is announced in September or October. Regardless of the exact date of the announcement, the DA increase is implemented from January and July.
Potential DA Increase Before Holi
There is a possibility of big news for central government employees before Holi. It is expected that, from January 2025, the employees of the Modi government will see a 4% increase in Dearness Allowance. This would result in an increase of Rs 540 to Rs 720 per month, depending on the employee’s salary.
How is Dearness Allowance Calculated?
To understand how the DA increase affects employees, let’s look at an example:
- If the salary of a central government employee is Rs 30,000 and their basic salary is Rs 18,000, they currently receive 50% DA, i.e., Rs 9,000.
- If the DA increases by 3%, the new DA will be Rs 9,540, which is an increase of Rs 540 per month.
- If the DA increases by 4%, the new DA will be Rs 9,720, an increase of Rs 720 per month.
Previous DA Increases
In March 2024, central government employees received a 4% increase in DA. Then, in October 2024, the DA increased by another 3%. As a result, the total DA for employees reached 53%. The upcoming increase in January 2025 is expected to be around 3-4%.
DA Hike: Frequency and Benefits for Employees
The government revises the Dearness Allowance (DA) twice a year, in January and July, based on the All India Consumer Price Index (AICPI) data. The official announcement for the DA hike is typically made in March and September. This increase benefits central government employees and pensioners by boosting their take-home salaries. However, the DA hike is a fully taxable allowance. Additionally, the hike varies based on the employee’s location, with different rates for those in rural, urban, and semi-urban areas.
