DA Hike: Good news for 1 crore employees-pensioners, dearness allowance may increase by 3%, See details
DA Hike: The government may increase the dearness allowance by 3% for the period July-December 2025. If this happens, the dearness allowance will increase from the current 55% to 58%. This will directly benefit the salary and pension of lakhs of employees and pensioners
DA Hike: Big good news is going to come for the central government employees and pensioners before Diwali. Amidst the preparations for the 8th Pay Commission, the Dearness Allowance is going to increase soon under the 7th Pay Commission. The government can increase the dearness allowance by 3% for the period July-December 2025. If this happens, the dearness allowance will increase from the current 55% to 58%. Its direct benefit will be on the salary and pension of lakhs of employees and pensioners.
DA revision is done twice a year
The government increases the dearness allowance given to its employees and pensioners twice a year. Dearness allowance is revised for the period January to June and July to December. The government can announce it anytime but it is considered applicable in this period. In March 2025, the government had increased DA by 2 percent for the period January-June 2025. Then it increased from 53% to 55%. Now it is expected that before Diwali, a 3% DA hike may be announced for July-December 2025. If this happens, the DA will increase to 58 per cent.
Impact on salary and pension
DA is calculated as basic salary. Therefore, it has different impact on different employees and pensioners. Suppose the minimum pension of a pensioner is Rs 9,000. Currently, at 55% DA, he gets Rs 4,950 extra, that is, the total pension becomes Rs 13,950. If DA becomes 58%, then he will get Rs 5,220. That is, the pension will become Rs 14,220. In this way, the pension will increase by Rs 270.
Impact on salary
If the minimum salary of an employee is Rs 18,000, then at the current 55% DA, he gets Rs 9,900, which makes the total salary Rs 27,900. But when 58% DA is implemented, he will get Rs 10,440 and the total salary will become Rs 28,440. That means there will be a monthly benefit of Rs 540 in the salary.
How is DA decided
The formula for deciding DA is also fixed, which is based on CPI-IW (Consumer Price Index for Industrial Workers).
Formula
DA (%) = [(12-month average CPI-IW – 261.42) ÷ 261.42] × 100
When will the government make the announcement?
At present, the government has not made any official announcement in this regard. If we look at the trend of previous years, the government has announced to increase DA after Navratri before Diwali. It is expected that a similar trend will be seen this time as well. Employees and pensioners may get the gift of 3% DA hike before Diwali. If this happens, the salary and pension of lakhs of central employees and pensioners will increase and the fun of festivals can be doubled.
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