7th Pay Commission DA Hike
The government revises Dearness Allowance (DA) for central government employees and pensioners every six months due to inflation and rising prices. The next revision will be effective from January 1, 2025, and the approval is expected by March 2025.
Currently, DA stands at 53%, but it is likely to increase to 56% starting from January 2025. This hike will increase the salaries and pensions of millions of employees and pensioners.
The final confirmation of the DA hike depends on one last data update. The AICPI (All India Consumer Price Index) numbers from July to November 2024 have already been released, and now everyone is waiting for the December 2024 numbers. Once that data is available, the exact DA percentage will be confirmed.
How much can dearness allowance increase?
Dearness Allowance (DA) is calculated based on AICPIN (All India Consumer Price Index for Industrial Workers) data.
In June 2024, the government increased DA from 50% to 53%. Now, based on the latest AICPIN data, another 3% hike is expected in January 2025, which means DA could rise to 56%.
Due to inflation and rising prices, the government reviews DA every six months for central government employees and pensioners. The next revision is scheduled for January 1, 2025, and the government may approve it by March 2025.
How much will the salary increase due to increase in dearness allowance?
How a 3% DA Hike Will Affect Employee Salaries
If the Dearness Allowance (DA) increases by 4%, it will have a direct impact on employees’ salaries. Let’s understand this with an example:
Basic Salary (₹)
Current DA (53%)
New DA (56%)
Increase in Salary (₹)
₹18,000
₹9,540
₹10,080
₹540
This DA hike will also benefit pensioners, as their pension amount will increase accordingly.
The government is expected to make an official announcement regarding this hike by March 2025. Until then, central government employees and pensioners should keep an eye on AICPIN (All India Consumer Price Index) data for updates.
Important point Regarding DA
The Dearness Allowance (DA) is calculated twice a year based on the government’s inflation rate data.
Under the 7th Pay Commission, DA is revised accordingly. From January 2025, DA is expected to increase to 56%.
The increased DA will directly raise the salaries of employees and the pensions of retired individuals. If the government decides to increase DA to 56% from January 2025, it will bring financial relief to employees and pensioners. This salary hike will boost their monthly income, making it easier to manage daily expenses.