Starting at the onset of a new year, the central employees are getting the present of DA hike from the central government. The central employees are super excited for this event. So far, the announcement of an increase in the dearness allowance was being postponed because the data on AICPI (All India Consumer Price Index) had not been released. Now that the AICPI data has come in, it has also been decided how much the dearness allowance is to be increased. Let’s know the details.
When the year comes to end 2024, and the new year 2025 starts, there will be a very big rise in the dearness allowance for central employees. Let us tell you that the government gives an increase in DA twice in a year. Keeping in mind the data of AICPI, this increase would be provided.
This figure is now out. The employees’ doubt has been cleared after the emergence of the AICPI figures concerning the percentage by which the government will raise the DA, know in this news (DA 2025.
It’s going to benefit millions of employees and pensioners. When the DA increased for central employees in January 2025 (7th Pay Commission DA Hike 2025), it would benefit millions of employees and pensioners. Now everyone eagerly awaits the announcement regarding how much will be the dearness allowance increase. Recently released figures of AICPI (All India Consumer Price Index) will decide to a great extent the possible figure of this increase.
This is one topic that employee organizations and officials discuss a lot these days. It is directly related to the overall financial condition of the employees. The next dearness allowance for central government employees will be effective from January 2025 (january 2025 DA kab badhega).
Uploaded Expectation of Employees
Earlier it was said by a few employees’ organizations that the government might declare the 8th Pay Commission along with DA hike for January 2025 in the budged to be presented in February, but now the announcement of dearness allowance hike is being expected in March 2025.
This is the date announced for such announcement
Whenever the central government revises or increases DA / DR whether for employees or pensioners, it adds up the half-yearly data of the AICPI index. DA revision annualizes in January and July every year. Delay in this leads to payment of arrears. This year, DA increased by 4 percent for January and 3 percent for July. Since then, DA has increased by 46 percent by December 2023 due to the two raises in 2024.
This is what happened within the 7th Pay Commission. The upcoming DA hike is also going to be under the seventh pay. It can also be announced in the budget 2025. After that, the state governments may also decide to increase DA for their employees.
This much of Dearness Allowance would increase
As of now, lakhs of central government employees and pensioners are entitled to get 53 percent of dearness allowance (DA update news). Every time, the DA is determined on the AICPI (Consumer Price Index of Industrial Workers) data.
Hence, as per the available data from July till October, AICPI index has reached 144.5 and the DA score is increased to 55.05 percent. On bases of this, the guess is made that there will be an increase by 3 percent in dearness allowance this time.
DA will also increase in these states
After raising the dear cess allowance and dear cess relief from the central government, the state employees and pensioners now expect to get the benefits as in Madhya Pradesh or in Uttar Pradesh. There is a possibility that the dearness allowance will now get an increase of 3 percent from January 1, 2025, enabling approximately 28-lakh employees and pensioners of the state to enjoy a benefit of 56 percent DA.
This will prove to be a significant relief for the employees and will be meaningful in cutting their daily expenses. Generally, it is after the increase of DA (2025 DA news) by the central government that the various states announce raising the dearness allowance for their government employees. In such a situation, apart from MP and UP, other state governments can increase DA (DA latest update) next year.
Draft of increase in dearness allowance ready
The Central Government has announced an increase in Dearness Allowance; a new gift in the form of this DA-benefit is could be announced for more than 7.50 lakh government employees and officers of Madhya Pradesh. The state government may increase DAA at 3 percent from January 2025. It is said that its draft has been made by the Finance Department, which can place it forward to the cabinet meeting any time after January 2025.
Currently, the DA for state government employees in MP is 50 percent, while this increase will take it to 53 percent. In the budget, however, allowance at the rate of 56 percent is provided for dearness relief. But the DA of All India Service officers has already been given a raise to 53 percent from July 2024. Contrastingly, Madhya Pradesh employees are still getting benefit from only 50 percent DA. Hence, there is a constant demand from the employees for an increase.
Growth of DA and DR
Government revises Dearness Allowance twice in January and July every year. Accordingly, average increase in All India Consumer Price Index is calculated over 12 months. This is applicable to industry workers.
How Dearness Allowance is calculated Dearness Allowance calculating
For Central government employees – the DA percent is determined by applying the following method: DA percent= [(Average of AICPI( base year 2001 = 100) for last twelve months-115.76)/115.76] x 100. In the case of the Public Sector employees, DA is calculated like this: DA%=[(Average of AICPI(base year 2001=100) for last three months-126.33)/126.33]*100.