7th Pay Commission: As the new year 2025 approaches, central government employees are eagerly awaiting the next round of hikes in dearness allowance (DA) for the January-June cycle. The Centre revises dearness allowance (DA) and dearness relief (DR) for over 1 crore central government employees and pensioners twice a year — once in the first half and again in the second half of the year.
The DA/DR revision is based on the increase in the All India Consumer Price Index (AICPI) over a 12-month period. The formula for calculating DA is – [(Average AICPI for the past 12 months (Base Year 2001=100) – 115.76) / 115.76] x 100.
The AICPI tracks the inflationary trends by measuring the average price level of a basket of goods and services.
Also Read EPFO: To what extent minimum pension under EPS is likely to be increased and by what time? Govt’s response 8th Pay Commission Delay: Employees’ Federation plans nationwide agitation in new year – Details inside 8th Pay Commission on hold? Govt employees may see performance-based salary hikes 7th Pay Commission: Gratuity limit hiked to Rs 25 lakh for THESE central govt employees!
How much can DA hike central govt employees expect for January-June cycle?
As of October 2024, the AICPI rose to 144.5. It is likely to rise to 145.3 once November and December data come, which would result in a DA increase to 56% in January 2025. Currently, the dearness allowance stands at 53%, which was hiked in October this year before Diwali.
Also read: 8th Pay Commission: What will be central govt employees salary and pension from January 2026?
When will next DA hike be announced by the Centre?
For the final DA calculation, the Centre will require November and December 2024 data. The November data is expected by January 1st week and December number will come in February 2025, which means that the next revision may be announced by February end. Past trends suggest that the government announces DA hikes for both six-month cycles with a two-month lag and provides arrears to employees and pensioners.
On October 16, 2024, the Union Cabinet approved a 3% hike in Dearness Allowance (DA) for central government employees, bringing it to 53% from 50%, just in time for Diwali.
» Read More
