Delhi, January 1: Central government employees and pensioners are anticipating another hike in Dearness Allowance (DA) for the January-June 2025 cycle on 7th Pay Commission recommendation, as inflation trends point to an increase. The DA revision, based on the All India Consumer Price Index (AICPI), happens twice a year — once in the first half and again in the second half.

The AICPI tracks inflation by measuring the average price of a basket of goods and services. As of October 2024, the index rose to 144.5 and is expected to reach 145.3 with the inclusion of November and December data. Using the formula for DA calculation, this increase would result in a DA hike to 56%, up from the current 53% on 7th Pay Commission recommendations. 7th Pay Commission: 3% DA Hike For Central Government Employees Soon? Check Latest Update.

The government will finalise the DA hike after receiving the AICPI data for November and December, expected in January and February 2025, respectively. Based on past trends, the announcement is likely to be made by late February, with arrears provided to employees and pensioners. 8th Pay Commission: Minimum Salary to Rise Above INR 50,000 For Central Govt Employees? Check Latest Update.

Earlier, in October 2024, the Union Cabinet approved a 3% hike in DA on 7th Pay Commission recommendations, increasing it from 50% to 53%, just before Diwali. Over 1 crore employees and pensioners benefited from the decision. Similarly, in March 2024, a 4% increase in DA was announced for the January-June cycle, bringing the rate to 50% before Holi.

With inflation remaining steady, another 3% hike in DA is expected to provide much-needed financial relief to central government employees and pensioners, starting 2025 on a positive note.

(The above story first appeared on LatestLY on Jan 01, 2025 03:27 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).