GOOD NEWS! 56% DA hike for central government employees? How will it affect salary?
A 56% DA increase for central government employees is almost certain. This increase is calculated based on the AICPI index up to November 2024, and the final amount will be confirmed after the release of December's data.
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Central employees receive various benefits, including DA and house rent allowance. DA increases are announced twice a year, in January and July, based on the All-India Consumer Price Index (AICPI). Good news for central government employees regarding a DA increase. The AICPI index for November 2024 has been released with no changes. It is now confirmed that central government employees will receive a new DA (DA increase) at a rate of 56%.
Until October 2024, the DA was 55.05%, but it increased to 55.54% in November's statistics. The AICPI index for December will be released on January 31st, after which the final figure will be determined. Will the DA exceed 56%? The answer is likely no. It's almost certain that the DA will only increase by 3%.
DA is calculated based on the average AICPI index for the past six months (July-December). However, 56% DA is considered fixed. Based on figures up to November, the DA has reached 55.54%. The government will likely round this up to 56%.
Will DA exceed 56%? Currently, it appears the DA will only increase by 3%. The index stands at 144.5 points as of November. Even with a 1-point increase, the total DA would only be 56.16%. In this scenario, the DA will likely remain at 56%.
How will a 56% DA affect salaries? Every 1% increase in DA significantly impacts employees' monthly salaries. Example: Basic Salary: ₹18,000, 53% DA: ₹9,540, 56% DA: ₹10,080, Gain: ₹540/month. Basic Salary: ₹56,100, 53% DA: ₹29,733, 56% DA: ₹31,416, Gain: ₹1,683/month.
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