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Great news for central government employees and pensioners! The government is expected to announce a Dearness Allowance (DA) hike soon, effective from January 1, 2025. This increase in DA will lead to a direct rise in salaries and pensions, benefiting lakhs of employees and retirees.
Currently, DA stands at 53%, but based on AICPI (All India Consumer Price Index) data, it is likely to increase to 56% from January 2025. The official confirmation will come once the December 2024 AICPI number is released.
How Much Can DA Increase?
The Dearness Allowance (DA) hike is based on AICPIN data, which tracks inflation and cost of living. Here’s how DA has changed:
June 2024 – DA increased from 50% to 53%.
January 2025 – Based on current data, DA may increase by 3%, taking it to 56%.
Final Government Approval – Expected by March 2025.
The government revises DA every six months to adjust for inflation, ensuring that employees and pensioners receive fair compensation.
AICPI Data from June 2024 to November 2024
| Month | AICPI (Base Year 2016=100) |
|---|---|
| June 2024 | 141.4 (53% DA announced) |
| July 2024 | 142.7 |
| August 2024 | 142.6 |
| September 2024 | 143.3 |
| October 2024 | 144.5 |
| November 2024 | 144.5 |
Salary Hike After DA Increase
If DA increases by 3%, here’s how it will impact salaries:
| Basic Salary (₹) | Current DA (53%) | New DA (56%) | Total Increase (₹) |
|---|---|---|---|
| ₹18,000 | ₹9,540 | ₹10,080 | ₹540 |
| ₹31,550 | ₹16,721.50 | ₹17,668 | ₹946.50 |
| ₹44,900 | ₹23,797 | ₹25,144 | ₹1,347 |
Impact on Pension
Pensioners will also see a similar increase in their monthly pension based on the new DA rate.
Key Points About the DA Hike
DA is revised every 6 months based on inflation data.
Calculated under the 7th Pay Commission.
Expected DA from January 2025 – 56%.
Salary and pension will increase proportionally.
Final Announcement & Next Steps
The official announcement regarding the DA hike is expected by March 2025. Until then, employees and pensioners should keep an eye on AICPIN updates.
If the government confirms a 56% DA, it will provide financial relief to central employees and pensioners, improving their monthly income and financial stability.
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