The essential government announcement regarding increase in Dearness Allowance in March would come up for much anticipation and waiting. It would be aired just before the spectacular auspicious festival of Holi.
A cabinet meeting would be called that much upcoming Wednesday and judging from the previous patterns, the government really is going to put over the lovely hands of many over 1 crore central government employees and pensioners. This is going to spread jubilance across millions of homes as they look forward to a bright, prosperous Holi celebration this 2025.
What is expected from DA hike?
Such hiked DA would typically go up by 3% to 4%, which would put a direct increase in the monthly salary of employees. For example, an employee with a basic salary of ₹18,000 will find his income rising from ₹540 to ₹720. Such increases would reduce financial pressure while simultaneously raising the spirits of the employees.
How is Dearness Allowance Derived?
It is calculated as a percent of basic pay. For example if I have a total salary of ₹30,000, out of which basics pay is ₹18,000, then current DA at 50% would amount to ₹9,000. A 3% hike would enhance DA to ₹9,540 and total salary would include 540 additional rupees. Similarly, a 4% hike would raise DA to ₹9,720, adding to monthly income a sum of 720.
Back at DA hike from last year
In March 2024, it introduced the 4% increase in the DA to bring it to 50%, later followed by another hike of 3% in October 2024, which raised the DA to 53%. Now, with the 3-4% hike likely to come along in January 2025, there is another upward climb where DA benefits will go higher, maintaining the mitigation of finances among employees and pensioners.
Who All Benefits From This DA Hike?
The decision benefits approximately more than 1 crore central government employees and pensioners. As of now, both the DAs and Dearness Reliefs (DR) for pensioners will be generalized twice a year, every January, and July, under the 7th Pay Commission. This would be almost the same as increasing salaries but improving the many families’ quality of life across an entire country.