The next DA hike, millions of central and state employees really looking forward to it, is about to be announced soon, and all inquiries regarding whether the increment would be 2% or 3% are quite rampant now. This comes at a time when household expenses continue skyrocketing due to inflation; thus, the revision of the Dearness Allowance is supposed to relieve the finances.
How Is DA Computed?
Annual Dearness Allowance is modified by the means of the All India Consumer Price Index, which data is obtained from monthly provisions for specific months every January and July. The percentage increase awarded is based on the increase in inflation and cost of living so that salaries and pensions are enough to service your daily expenses.
From the AICPI index for the past few months, it is evident that the next DA hike is most likely going to be 2% or 3%. Further, in case of rising inflation, the government may go for a higher increase of 3%. Otherwise, in case price remains stable, a more likely option would be a 2% DA hike.
Expected DA Increase In 2025
- 2% DA Hike: If the government gives the green light for an increase of 2%, this translates the DA for central government employees from 46% to 48%.
- 3% DA Hike: With a 3% increase, the new DA rates are expected to be 49% of basic salary.
The hike of 3% has increased the salaries and pensions, benefiting government employees and retirees across the country.
When Will The Government Announce The DA Hike?
The hike is likely to be announced prior to Holi 2025, followed by the revised salary in the next pay cycle for employees. The increase will also be applicable backdated from January 1, 2025, which means employees will get arrears for the previous months.
Conclusion
The 2% or 3% increase in DA would result in much-deserved boosts in salaries for government employees and pensioners alike. The final decision here would depend on the trend of inflation and the performance of AICPI index data, and likely the amount that would strike the balance between relief in finances and continued economic stability.
Also Read: 8th Pay Commission: Big Salary Hike For Employees, Pensioners To Get Major Benefits!