The good news was that new year was going to bring a lot of promise for central employees and the pensioners. One of the most awaited announcements is of the Eighth Pay Commission, which is expected to increase the salary of employees. There are also rumors about the possibility of the announcement of the Eighth Pay Commission within this budget. Meanwhile, on the increase of dearness allowance of employees also, important updates are most likely to come.
Increase in dearness allowance
Employees would be unwrapped the gift of New Year Dearness Allowance increase. According to media reports, the government has made preparations for this. Announcement for increasing the dear allowance is expected during March of the new year. Dearness allowance is usually/widely increased with Holi as the timing. Likewise, those who maintain a pension will gain from this also.
How is dearness allowance calculated
Currently, employees are getting their salary as per the 7th Pay Commission. The computation of dearness allowances is made on the All India Consumer Price Index. The figures till October 2024 have been announced, and now, only figures for November and December are awaited. AICPI figures are released on a monthly basis, indicating the status of inflation.
How much will dearness allowance increase
At present, the figures of All India Consumer Price Index till October portray about an increase of 3 percent in DA in 2025. As of October, the All India Consumer Price Index ranging was at 144.5 points. Figures for November and December are yet to come. If that figure can remain around 145 in both these months as well. According to thus, dear allowance would increase from 53 to 56 percent as from January 2025.
Employees’ salaries will be directly affected-
SAH increases directly affect employee salaries. The employee who received DA of 53 percentages of his basic salary will now get 56 percentages. Therefore, DA will increase directly by 3 percentages. This will also benefit pensioners as well.
The direct increase in DA will lead to a corresponding increase in the salaries of employees. Earlier, DA was 53 percent on the basic salary of the employee which will become 56 percent now. It indicates that the employees will be getting an increase of 3 percent DA. This increase, though, is not only for current officials but also applies to pensioners as they too will avail of this hike. Thus, the increase in DA would play an important role in improving the overall financial status of the employees.
When Will DA be Announced?
Dearness allowance is revised two times every year, first in January and the second one in July, based on the AICPI index. Usually, March enacts the announcement, while in October, the other announcement is made. It is highly anticipated that the Jan. DA will be announced in March 2025.
Therefore, supposing inflation determines how these alterations would be made, employees get precisely adjusted financial relief. Therefore, as per the sources, it is expected to make this announcement somewhat around the Holi festival so that employees can take advantage of this festival.
