Delhi, December 27: The dearness allowance (DA) revision for central government employees and pensioners is expected in January 2025, but its official announcement may be delayed as the government awaits the final All-India Consumer Price Index (AICPIN) numbers for December. These figures, essential for determining the DA hike, will likely be available in February 2025.

The DA is revised biannually—once for January-June and again for July-December—and is based on the AICPIN, which monitors the cost of living. The government calculates DA by assessing the 12-month average increase in the AICPIN, with a lag in receiving the final data. 8th Pay Commission: Salary Hike of INR 34,560 For Central Govt Employees Soon? Check Latest Update.

Potential Hike in DA

As of October 2024, the AICPIN stood at 144.5, suggesting a potential increase in DA to 55.05%. Projections indicate that the index may rise to 145.3 in November and December, resulting in a DA hike to 56%. If the government implements a 3% increase, central employees earning a minimum salary of INR 18,000 would receive an additional INR 540, while pensioners with a minimum pension of INR 9,000 would see an increase of INR 270. 8th Pay Commission on Hold? Central Govt Employees May Get Salary Hike Based on Performance, Says Report.

For senior employees with a maximum salary of INR 2,50,000, the DA hike could result in an increase of INR 7,500, while pensioners with a maximum pension of INR 1,25,000 would receive an additional INR 3,750.

Recent DA Updates

In October 2024, the Union Cabinet approved a 3% DA hike, raising it to 53% from 50%. Earlier in March 2024, DA was increased by 4%, bringing it to 50% of basic pay.

Employee Demands for 8th Pay Commission

Unions are pressuring the government to establish the 8th Pay Commission for revising salaries and pensions for over one crore employees and pensioners. However, the Finance Ministry has clarified that there are no current plans to introduce it.

Formula for DA Calculation

For general employees:

DA (%) = ((Average AICPIN for 12 months - 115.76) / 115.76) × 100

For central public sector employees:

DA (%) = ((Average AICPIN for 3 months - 126.33) / 126.33) × 100

Further updates are expected once December’s AICPIN data is available.

(The above story first appeared on LatestLY on Dec 27, 2024 02:08 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).