DA hike update: GOOD news for Central govt employees as they may get 2% increase?

When will the Dearness Allowance (DA) or Dearness Relief (DR) increase? Speculation is rife among central government employees. The government hasn't made an official announcement yet, but sources suggest a potential 2% increase in DA. 

DA Increase

Speculation is rife among central government employees about a DA increase. It may be increased as early as January or February. The Dearness Allowance for central government employees and Dearness Relief for retired government employees were increased from July 1, 2024. Another DA/DR increase is anticipated.

DA Basis

The Dearness Allowance for central government employees is calculated based on the average All-India Consumer Price Index. The formula for this increase is - {Average of last 12 months (All-India Consumer Price Index (Base Year - 2001 = 100) - 115.76) / 115.76} X 100.

The All India Consumer Price Index increased to 144.5 until last October. Now, November's AICPI statistics have been released. The Ministry of Labour's statistics show that the AICPI remained unchanged in November at 144.5.

According to calculations, the DA should be 55.54%. However, the central government doesn't consider fractions. Therefore, the DA/DR for central government employees may only increase by 2%.

With a 2% or 3% DA increase, central government employees with a minimum basic salary of Rs. 18,000 will receive Rs. 10,080 as DA.

If the central government announces a DA increase in March, employees will also receive arrears for January and February.

8th Pay Commission Discussion

Discussions about the 8th Pay Commission have already begun among central government employees, but the government hasn't made any official announcements.

State government employees are looking towards the Supreme Court regarding their DA. The DA case may be heard again in the Supreme Court towards the end of March.