7th Pay Commission DA Hike: There is good news for central government employees and pensioners. The dearness allowance of central employees is going to increase before Holi. Holi is on 14 March 2025.
Before that, the government can announce an increase in dearness allowance. Under the 7th Pay Commission, dearness allowance is increased twice a year. Once in March and second time in October. The first increase will be effective from January 1, 2025. Its official announcement is likely to be made in March 2025 around Holi. However, no official confirmation has been made by the government yet.
How much will the salary increase due to DA hike?
According to employee organizations, this time dearness allowance can increase by 3 to 4 percent. This can increase the salary of employees from Rs 540 to Rs 720 per month. For example, if the basic salary of an employee is Rs 18,000 per month, then he is currently getting Rs 9,000 under 50% DA.
With 3% DA hike, the new DA will be Rs 9,540, i.e. an increase of Rs 540.
With 4% DA hike, the new DA will be Rs 9,720, which will be Rs 720 more.
Pensioners will also get benefit
Dearness Allowance (DA) is given to employees, while for pensioners it is called Dearness Relief (DR). This time more than 1 crore government employees and pensioners will be able to take advantage of this increase.
How much was the increase last year?
In October 2024, the government increased DA by 3%, increasing it from 50% to 53%.
In March 2024, the government increased it by 4% to 50%.
How is dearness allowance decided?
Dearness Allowance is calculated based on the All India Consumer Price Index (AICPI). The government fixes the rates of DA and DR taking into account the 12-month average AICPI data.
DA (%) = Average of last 12 months AICPI – 115.76)/115.76) × 100
For public sector employees
DA (%) = Average of last 3 months AICPI – 126.33)/126.33) × 100
Last DA hike before 8th Pay Commission
The 8th Pay Commission is likely to be implemented from 2026, but before that the central government employees will get two DA hikes under the 7th Pay Commission. This will increase their monthly salary and will also provide some relief from inflation. Now all the employees are waiting for the official announcement to be made in March 2025, which will make it clear how much the salary will increase.
