Great news for central employees and pensioners. Following the 8th Pay Commission, there’s another exciting update on the horizon. Everyone is eagerly anticipating the revision of the dearness allowance, which is set to take place in January 2025.
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The Central Government typically adjusts the dearness allowance and dearness relief for central employees and pensioners twice a year, based on the half-yearly data from the All India Consumer Price Index (AICPI). These adjustments are usually announced around February-March and September-October, with the last increase in 2024 being 7 percent (4% in January and 3% in July).
1. As of now, central employees and pensioners are enjoying a dearness allowance and relief rate of 53 percent since July 2024, and new rates are expected to be announced in January 2025, influenced by the AICPI index data.
2. From July to November 2024, the AICPI index has recorded a score of 144.5, leading to a DA score of 55.05%. However, we are still waiting for the December figures.
3. It is anticipated that around the time of Holi, the dearness allowance and relief could see an increase of 3 to 4 percent, raising the DA from 53% to 56%. This adjustment will be made under the 7th Pay Commission, benefiting approximately 48 lakh central employees and 69 lakh pensioners.
Wondering how much your salary and pension will go up with the DA increase?
1. The boost in Dearness Allowance (DA) and Dearness Relief (DR) is based on the percentage change in the 12-month average of the All India Consumer Price Index (CPI-IW) for industrial workers. Usually, the government revises these allowances on January 1 and July 1 every year.
2. For central government employees, the DA is figured out using this formula: DA% = [(Average of AICPI (Base Year 2001 = 100) for the last 12 months – 115.76)/115.76] x 100.
3. Public sector employees have their DA calculated like this: DA% = [(Average of AICPI (Base Year 2001 = 100) for the last 3 months – 126.33)/126.33] x 100.
For example, if someone has a minimum salary of Rs 18,000, they’ll see an increase of Rs 540 with a 3% DA hike. On the other hand, someone earning a maximum salary of Rs 2,50,000 will get an extra Rs 7,500. Pensioners will benefit too, with their pensions possibly rising by Rs 270 to Rs 3,750.
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This article discusses: Employees and pensioners will soon get another gift, DA will increase by this much percentage!