New Delhi, January 10: The next dearness allowance (DA) revision for central government employees, effective January 2025, is expected to be announced in the first week of March on basis of 7th Pay Commission. This delay is attributed to the time lag in releasing the All-India Consumer Price Index for Industrial Workers (AICPI-IW) data.

The Labour Ministry’s November 2024 data shows the index remained steady at 144.5 points, suggesting a 3% DA hike. This would raise the DA/DR rate to 56% on 7th Pay Commission. However, final confirmation depends on December’s AICPI-IW data. 7th Pay Commission: DA Hike For Central Govt Employees Expected Early This Year? Check Latest Update.

Scenarios for DA Hike

If the AICPI-IW index remains unchanged or fluctuates by 0.5 points in December 2024, the DA rate will likely hold at 56%. A drop of 0.6 points or more could reduce the hike to 2%, resulting in a 55% DA rate. The government revises DA for employees and dearness relief (DR) for pensioners twice annually, covering January-June and July-December periods. Past trends indicate a two-month lag before announcement, with arrears paid for January and February in March. 7th Pay Commission: When Will Next DA Hike Be Announced? Know How Much Salary Hike Central Govt Employees Can Expect.

Impact of DA Hike on Salaries and Pensions

If the government approves a 3% hike on 7th Pay Commission recommendations, the minimum salary for central staff will rise by INR 540, as the current basic pay starts at INR 18,000. Pensioners with a minimum pension of INR 9,000 will see an increase of INR 270. For top earners, a 3% hike will mean a INR 7,500 increase for those with a maximum salary of INR 2,50,000 and INR 3,750 for pensioners receiving INR 1,25,000.

Demand for 8th Pay Commission

Trade unions are urging the government to set up the 8th Pay Commission for salary and pension revisions, expected to be implemented from January 1, 2026. Discussions on this were raised during a recent pre-Budget meeting with Finance Minister Nirmala Sitharaman.

The commission, typically formed every 10 years, would provide updated recommendations for central government employees and pensioners.

(The above story first appeared on LatestLY on Jan 10, 2025 07:40 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).