DA Hike Update Budget 2025: The new year is going to bring good news for the central government employees. It is believed that Dearness Allowance (DA) can reach up to 56 percent. At present, dearness allowance in the country is 53 percent, which the government can increase by 3 percent. If this happens, then the dearness allowance given to government central employees may increase from 53 percent to 56 percent. This increase is possible based on All India Consumer Price Index (AICPI) data till October 2024. The government may announce it anytime but it will be considered effective from January 1, 2025.
AICPI index and dearness allowance
DA is determined on the basis of AICPI index, which is released at the end of every month. After this, dearness allowance is changed at an interval of about six months. The AICPI index stood at 143.3 in September 2024 and it increased to 144.5 in October 2024. However, the figures for November 2024, which were due on December 31, have not yet been released. It is now likely that the data for November and December 2024 will be released together on January 31, 2025.
DA of central employees may increase up to 56%
Employees are being given 53 percent dearness allowance from July 2024. Based on AICPI data till October 2024, DA has already crossed 55 percent. If the figures of November and December also show the same trend, then the new DA may be announced in March 2025. If we look at the record of previous years, the government has announced DA increase in March before Holi. If it is announced in March, it will be considered effective from January 1, 2025. 2 months DA arrears will be given along with it.
DA increase will have a big impact
Even a 1 percent increase in DA brings a big change in the salaries of employees. Dearness Allowance is given to the employees to provide relief from the impact of rising inflation. This increases their spending power. Besides, the pension of pensioners also increases. However, the increase in dearness allowance impacts the government exchequer. But this step is taken to strengthen the employees financially and increase their purchasing power and to tackle inflation.
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