Update on the Increased Dearness Allowance (DA), which is keenly awaited by millions of central government employees and pensioners. Typically, announcements about DA are made by the government before the grand festivals; however, the waiting period for this year appears to be very long as compared to previous years.
Although there have been many speculations regarding the announcements, the reliable word is that an official announcement is being awaited shortly, most likely before Eid.
Why Is the Delay in Announcing the DA Hike?
In previous years, the DA rates were revised by the government just before Holi, but this time it has been postponed. Employees are questioning this unusual delay in announcing an increase in the DA. It is being said from sources that Cabinet approval is still pending, and an announcement can follow sometime soon after the next meeting.
How Much Will DA Increase This Time?
DA is reviewed under the 7th Pay Commission twice in a year—January and July. That being said, the potential increase for January 2025 is not yet finalized and still pending. Last year, DA had an increase of 7% and brought the total up to 53% after two installments. This year, experts expect an increase of 2-4% at the most.
Projected DA Hike Scenarios:
- 2% Increase → DA rises to 55%
- 3% Increase → DA reaches 56%
- 4% Increase → DA jumps to 57%
How Will the Salary and Pension Be Affected?
The DA hike will directly impact the salaries of over 1 crore central employees and pensioners. Here’s a breakdown of the expected changes based on a basic salary of ₹18,000:
Salary Increase Calculation:
- 2% Hike → New Salary: ₹18,360
- 3% Hike → New Salary: ₹18,540
- 4% Hike → New Salary: ₹18,720
Pensioners’ Benefits (Dearness Relief – DR):
- 2% Hike → Minimum Pension: ₹13,950
- 3% Hike → Minimum Pension: ₹14,040
- 4% Hike → Minimum Pension: ₹14,130