The central employees of the country are eagerly waiting for the Dearness Allowance (DA) and Dearness Relief (DR) for the next half year, i.e., July to December. This wait is also because the allowance of the employees has increased marginally during the first half year. Currently, the allowance of the employees is 55 percent. So, let us know how much allowance the central employees can get in the next half year. Will the increase be marginal this time too?
Employees are disappointed with a marginal increase of 2%
Last month, the government had increased the Dearness Allowance (DA) and Dearness Relief (DR) for about 1.2 crore central employees and pensioners by 2% to 55%. This increase of 2% in DA for the period January to June was the lowest in the last 78 months. This marginal increase has disappointed the employees a bit and now their eyes are set on the July-December increase.
Last DA of 7th Pay Commission
A further decline in inflation in the first three months of the calendar year 2025 indicates that central employees may see a DA hike of less than 2%. The All India Consumer Price Index (AICPI-IW) data for the first two months of 2025 saw a decline, which may reduce the DA hike for July-December 2025. AICPI-IW is an important parameter for calculating the DA hike for employees.
If this decline continues for the next 4 months, the allowance may be affected. According to media reports, this will further disappoint crores of central government employees and pensioners. Technically, this will be the last DA revision in the 7th Pay Commission. Let us tell you that on December 31 this year, the 7th Pay Commission will complete its 10-year term.
What is Dearness Allowance
Dearness Allowance (DA) is a type of allowance given to central and state government employees and pensioners to reduce the impact of rising inflation! Let us tell you that DA is revised twice a year. The first half is for the period of January and June.
The second half is from July to December. The first hike of the year is usually announced in March, and the second in October/November every year. It plays an important role in maintaining the standard of living of employees and pensioners.