Delhi, January 3: With the arrival of New Year 2025, over 1 crore central government employees and pensioners eagerly await the announcement of the next hike in Dearness Allowance (DA) for the January-June cycle on 7th Pay Commission recommendations. The government revises DA and Dearness Relief (DR) twice a year—once in July and again in October—based on the All-India Consumer Price Index (AICPI) data.

Currently, DA for central employees stands at 53% on basis of 7th Pay Commission, following the October 2024 revision ahead of Diwali. According to AICPI data for October 2024, which reached 144.5, and projections for November and December, the index is expected to touch 145.3. This could lead to a DA hike to 56% in January 2025. 7th Pay Commission: When Will Next DA Hike Be Announced? Know How Much Salary Hike Central Govt Employees Can Expect.

The calculation for DA hike is derived from the formula:

[(Average AICPI for the past 12 months (Base Year 2001=100) – 115.76) / 115.76] x 100.

The November 2024 AICPI data, expected in the first week of January, along with December figures, will guide the government in finalising the DA hike. Historically, DA announcements occur with a two-month lag, including arrears for the employees. 7th Pay Commission: 3% DA Hike For Central Government Employees Soon? Check Latest Update.

If the trend holds, the announcement for the January-June cycle hike could be made by February 2025 on 7th Pay Commission recommendations, ensuring timely updates for employees and pensioners. The expected increase will provide much-needed financial relief as the cost of living continues to rise. The government remains committed to revising DA regularly to align with inflation and living expenses, reflecting its support for central employees and pensioners.

(The above story first appeared on LatestLY on Jan 03, 2025 02:35 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).