Good News How Much Will the DA of Central Employees Increase in January 2025?
Central employees are set to receive good news as the new year approaches. A noticeable increase in the Dearness Allowance (DA) is expected, with discussions pointing to a significant rise on the horizon. Based on the latest All India Consumer Price Index (AICPI) data, the DA is projected to increase by 3 percent, bringing the total Dearness Allowance to 56 percent by January 2025. Let’s delve into how these calculations are made.
AICPI Overview
The AICPI index, which monitors inflation and commodity price changes across the country, forms the basis for calculating DA. Data from July to October 2024 shows the following trends:
July 2024: AICPI index at 142.7
points, DA at 53.64%
August 2024: AICPI index at 142.6 points, DA at 53.95%
September 2024: AICPI index at 143.3 points, DA at 54.49%
October 2024: AICPI index at
144.5 points, DA at 55.05%
Currently, the Dearness Allowance is 53 percent, effective from July 2024. Projections for November and December 2024 suggest a 3 percent increase, resulting in a 56 percent DA effective from January 2025.
New DA Effective from January 1, 2025
The central government revises the DA every six months. Following a 3 percent hike in July 2024, another 3 percent increase is anticipated for January 2025. This adjustment will benefit over 10 million employees and pensioners, with the updated DA likely being announced in March 2025, around the Holi festival.
Salary Increase Under the 7th Pay
Commission
Let’s break down how the salary increase will look based on the 7th Pay Commission’s pay scale. Employees with a minimum basic salary of ₹18,000 will see an annual increase of ₹6,480.
Here’s how the calculations stack up:
- DA from January 2025: ₹18,000 x 56% = ₹10,080/month
- DA from July 2024: ₹18,000 x 53% = ₹9,540/month
This 3 percent increase results in a difference of ₹540 per month.
Conclusion
The anticipated rise in the Dearness Allowance will provide much-needed financial relief to central employees and pensioners, helping them better cope with inflation. Stay tuned for the official announcement in March 2025
