Finance Desk – Good news for central government employees! The government is expected to announce a 2% Dearness Allowance (DA) hike before Holi, as part of the January-June salary revision cycle. This means employees can expect a salary increase effective from January 1, 2025.
DA Hike Before Holi
- The DA is revised twice a year (January & July).
- Reports suggest the DA will increase from 53% to 55% of basic pay.
- The final decision will be taken in a Cabinet meeting chaired by PM Narendra Modi.
- Holi falls on March 14, 2025, and the announcement is expected before that.
Previous DA Hike in October 2024
- Employees received a 3% DA hike, effective from July 1, 2024.
- DA increased from 50% to 53% of the basic pay.
- Pensioners also received a similar hike in dearness relief (DR).
A 2% DA hike means an increase of Rs 360 per month for employees with a basic salary of Rs 18,000.
If the DA hike is 3%, the increase will be Rs 540 per month.
How is DA Hike Calculated?
The DA hike is based on the All India Consumer Price Index (AICPI). The formula for DA calculation is:
DA (%) = ((Average of AICPI for last 12 months – 115.76) / 115.76) x 100
Upcoming 8th Pay Commission
The 7th Pay Commission ends on December 31, 2025.
The 8th Pay Commission has been announced but the terms of reference (ToR) and members are yet to be decided.
The new pay structure will be implemented in 2026.
