DA Hike Big Update: Central government employees and pensioners are awaiting this year’s second DA hike, which was scheduled to be announced in September. It is expected to increase by 3% and bring the dearness allowance to 58%.
The festive season has begun in the country, and central government employees and pensioners are eagerly awaiting the announcement of an increase in dearness allowance (DA) and dearness relief (DR) before Diwali. The government increases these salaries twice a year, and this year, the second increase is for 2025. It is expected that the DA hike may be announced before Diwali. According to the latest update, the Confederation of Central Government Employees and Workers has written to Finance Minister Nirmala Sitharaman, urging her to make a quick decision.
The demand was made by writing a letter to the Finance Minister.
It should be noted that the DA is revised twice a year, and this year’s first DA hike was effective in January. However, the July 1st change is still pending. Therefore, central government employees and pensioners are hoping for a major announcement from the government before Diwali .
According to a Business Today report, in a letter to the Finance Minister, the Central Employees and Workers Federation has requested immediate action. It states that the DA/DR installment effective July 1, 2025, has not yet been announced. It is usually announced in the last week of September, and the three-month arrears are released in the first week of October. This delay is causing growing frustration among employees and pensioners.
50 lakh employees and 65 lakh pensioners will benefit.
Although no official update has been released by the government regarding this, many reports are predicting that the dearness allowance of central employees may be increased by 3%. If this happens, more than 50 lakh central government employees and approximately 65 lakh pensioners will benefit. It should be noted that since January, DA and DR were increased by 2%, from 53% to 55%. If there is a new increase of 3%, it will increase to 58%.
DA is calculated using this formula.
Dearness allowance is a significant part of an employee’s salary . The government calculates its increase based on the Consumer Price Index for Industrial Workers (CPI-IW), which is released monthly by the Labor Bureau. The government uses a specific formula, developed under the 7th Pay Commission, based on the average CPI-IW for the previous 12 months.
DA (%)= [(12-month average CPI-IW – 261.42) ÷ 261.42] × 100
The salary of the employees will increase by this much.
As it is being expected that this time the dearness allowance of the employees may increase by 3% to 58%, so this will lead to a huge jump in the salary of the central employees. Its calculation is easy.
If we look at the basic salary of an entry level employee of Rs 18,000, then till now he used to get DA of Rs 9,900 at the rate of 55%, but after the increase of 3%, if we calculate it at the rate of 58%, then there will be a direct increase of Rs 540 per month and the dearness allowance of the employees will increase to Rs 10,440. Accordingly, they will get a benefit of Rs 6480 annually.
