DA Hike 2025: Dearness allowance will increase again, arrears will also benefit, know how much will the salary increase?

DA Hike 2025: Based on the half-yearly data of the All India Consumer Price Index Index, the rates of dearness allowance of central employees and pensioners and dearness relief of pensioners are revised twice a year by the Central Government. This increase is made every year from January/July, with the announcement around March and October.

In the year 2024, the DA increased by 4% from January 2024 and 3% from July, after which the DA has increased to 53%, now the next increase will be from January 2025. The percentage increase in DA will depend on the semi-annual data from July to December 2024 i.e. All India Consumer Price Index. The increase will be made under the Seventh Pay Commission.

Dearness allowance will increase by 3 or 4 per cent

• Currently, 48 lakh central employees and 68 lakh pensioners are benefitting from 53% DA. Now the next DA is to be extended from January 2025, which will depend on the July to December 2024 data of the AICPI index.
• If you look at the data from July to November, the AICPI index score has reached 144.5 and the DA score has reached 55.05%, in such a case, the DA is bound to increase by 3%, although the data for December is yet to come, after that it will be decided which percentage will be increased in DA. The announcement of the new rates is estimated to be around Holi, as it will be implemented from January 2025, in such a case, 2 months of arrears will also be available.

How much will the salary increase from DA hike 2025?

• For example, employees with a minimum wage of Rs 18,000 will get a 3 per cent DA increase of Rs 540 and employees with a maximum salary of Rs 2,50,000 will get an increase of Rs 7,500. If an employee is getting a dearness allowance of Rs 15,000 per month, it will increase to Rs 15,450. That is, they will get more than Rs 450 per month.
• Pensioners will also get this benefit, whose pension can be increased from Rs 270 to Rs 3,750.

After the centre, DA will also increase in UP

• After the announcement by the central government, the Uttar Pradesh government will increase the DA again from 1 January 2025, after which the DA will increase to 56 percent. This will benefit 28 lakh employees and pensioners.
• Along with this, an annual increase of more than two lakh employees will also be made. About 25% of the state’s employees, without an increase in July, will be given an additional 3% increase in January, bringing their paycheques to about 6%. All remaining employees will get the benefit of 3% salary increase.

This is how the dearness allowance is calculated

• The increase in DA and DR is calculated based on the percentage increase in the 12-month average of the All India Consumer Price Index (CPI-IW) for industrial labourers. The government usually amends these allowances on January 1 and July 1 every year.
• DA is calculated for central government employees- DA% = [(average of AICPI (base year 2001 = 100) for the last 12 months – 115.76)/115.76] x 100
• DA is calculated for public sector employees- DA% = [(Average of AICPI (Base year 2001 = 100) for last 3 months – 126.33)/126.33] x 100