The DA under the 7th Pay Commission is revised twice a year, with the first increase taking effect from January 1 and the second from July 1. The first DA hike for 2025 will be effective from January 1, 2025, and the official announcement might be made in March 2025. However, the government has not yet made any official statement regarding the DA hike. Central government employees and pensioners are expected to receive positive news before Holi 2025, which falls on March 14, 2025. The government could potentially announce the DA hike as a special gift before the festival.
How much will the salary increase due to DA hike?
According to employee organizations, this time the dearness allowance can increase by 3 to 4 percent. This can increase the salary of employees from Rs 540 to Rs 720 per month. Let us understand this with an example:
If the basic salary of a government employee is Rs 18,000, then he is currently getting Rs 9,000 under 50 percent DA. If there is a 3 percent increase in DA, then the new dearness allowance will be Rs 9,540, that is, he will get Rs 540 more. On the other hand, if there is a 4 percent increase in DA, the new dearness allowance will be Rs 9,720, which will give Rs 720 more.
Pensioners will also benefit
Dearness Allowance (DA) is given to government employees. On the other hand, it is Dearness Relief (DR) for pensioners. 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?
The government increased DA by 3% in October 2024, increasing it from 50% to 53%. In March 2024, the government increased DA by 4% to 50%.
How is dearness allowance decided?
Dearness allowance is calculated on the basis of All India Consumer Price Index (AICPI). The government fixes the rates of DA and DR keeping in mind the average AICPI data of the last 12 months.
For Central Government employees
- DA (%) = (Average of AICPI of last 12 months – 115.76) / 115.76) × 100
For Public Sector employees - DA (%) = (Average of AICPI of last 3 months – 126.33) / 126.33) × 100
Last DA hike before 8th Pay Commission
The 8th Pay Commission is likely to be implemented from 2026. Before that, Central Government employees will be able to avail two more DA hikes under the 7th Pay Commission. This will increase their monthly salary significantly.
