DA hike 2025: It’s expected that all central as well as state government employees and pensioners will receive an extraordinary gift of increase in dearness allowance (DA) during the new year 2025. The new rates will be effective for central employees from January 2025, even though formal announcement will be made after the budget session in March 2025. Experts believe that this time there would be a 3 percent increase in dearness allowance.
DA Increase Status In 2024
Increased Dearness Allowance, which was made effective in two parts, the first near the beginning of January and the other near the end of June, was 4% and 3%, respectively, thereby taking the overall monthly calculated amount to 53%. This was comprehensive relief to central employees and pensioners alike. Now, awaiting January 2025, wherein increases would be made for central and state employees.
The Basis of DA Hike Is AICPI Index
This dearness allowance is based on AICPI-All India Consumer Price Index- for the industrial workers. From July to October 2024, the All India Consumer Price Index functioned at 144.5 for the month; therefore, the DA score is at 55.05%. If these figures from November and December do not trend otherwise, an increase of 3 percent in dearness allowance from January 2025 seems almost certain.
State Employees Will Also Be Benefitted By DA Hike 2025
So generally, the central governments announce similar increases in dearness allowances for their state governments with respect to employees and pensioners. Madhya Pradesh and Uttar Pradesh should also raise the DA of employees between 2% and 3% after January 2025.
The Status Of DA Hike In Madhya Pradesh
The state government has prepared proposals to give DA increases to 7.50 lakh government employees in Madhya Pradesh. It may soon be tabled for discussion in the cabinet. Currently, state employees have a 50% DA, which can go up to 53%.
DA Hike In Uttar Pradesh: Benefits
In Uttar Pradesh, all its 28 lakh employees and pensioners would benefit from a 3% increase in DA. This means that their DA will rise from 53% to 56%.
How The DA Hike Are Calculated?
For determining the dearness allowance rates, the percentage difference between the base value and the average of the last 12 months of AICPI (Base Year 2001=100) is calculated and this rate is then revised by the central government every year as on 1 January and 1 July. Public sector employees base their calculation on the last 3 months of AICPI accumulated average.
Because Of DA Increase, The Salary Will Boost.
3 % increase on dearness allowance means a significant addition to the salary of the employees. This will then directly add the pensioners to receive the same benefits. This will also do great relief from rising inflation in the market.
Also Read:
AICPIN December 2024: Know The Latest Figures And Impact Of DA January 2025