Dearness Allowance Set to Rise Again in March! Employees to Receive Two Months' Arrears—Find Out How Much Your Salary Will Increase

Dearness Allowance Set to Rise Again in March! Employees to Receive Two Months' Arrears—Find Out How Much Your Salary Will Increase Newspoint | 21/02/2025 17:39:14

Upcoming DA Hike: Central Employees and Pensioners to Get an Increase Along with Pending Arrears

The central government is preparing to increase the dearness allowance (DA) for employees and pensioners, with the revised rates set to be applicable from January 1, 2025. The official announcement is expected to be made around Holi.

7th Pay Commission DA Hike: How It Works

The Dearness Allowance (DA) and Dearness Relief (DR) for central employees and pensioners are revised twice a year, based on the All India Consumer Price Index (AICPI) data. These revisions are made in January and July, with official announcements typically coming around March and October.

Currently, central employees and pensioners receive DA at a 53% rate. The next increase, effective from January 1, 2025, will be determined by the AICPI index data from July to December 2024. Preliminary estimates suggest a 3% hike, which could be approved by the government in an upcoming cabinet meeting before Holi.

March DA Hike: A 3% Increase is Almost Certain

Based on AICPI data from July to November, the index has reached 144.5, and the DA score is now at 55.05%, making a 3% DA hike highly likely. However, the December 2024 data is still awaited, which will determine the final percentage.

Since the revised DA rates will be effective from January 2025, employees will also receive two months’ arrears (January and February) along with the new salary structure. This increase will benefit 48 lakh central employees and 69 lakh pensioners under the 7th Pay Commission.

How Will Salary and Arrears Be Calculated?

The DA calculation formulas are as follows:

✅ For central government employees:

DA% = [(Average of AICPI (Base Year 2001 = 100) for the last 12 months – 115.76)/115.76] × 100

✅ For public sector employees:
DA% = [(Average of AICPI (Base Year 2001 = 100) for the last 3 months – 126.33)/126.33] × 100

Expected Salary Increase with a 3% DA Hike:

Employees with a basic salary of ₹18,000 will receive a ₹540 monthly increase.
Employees with a basic salary of ₹2,50,000 will see a ₹7,500 hike.
If an employee currently receives ₹15,000 DA per month, it will increase to ₹15,450, meaning a ₹450 per month raise.
Pensioners will also benefit, with an increase ranging from ₹270 to ₹3,750, depending on their current pension amount.

With higher salaries, two months’ arrears, and better financial security, this DA hike will be a significant relief for millions of employees and pensioners. The final confirmation will come once the government officially announces the revised rates.