This news is something for the whole set of central government employees in the country. DA is said to get a further increase of 12% from July 2025, so as to accord drastic growth to monthly salaries and pensions. In view of the steady increase of the All-India Consumer Price Index for Industrial Workers or AICPI-IW, with the index at 144, it has attained the place of an important sitting mode for DA revisions.
What is DA and Why is it Important?
It is an allowance to protect against inflationary losses in prices, which is paid to employees and pensioners in the government. Hence the DA rates are revised twice every year, in January and July, with some reference to increases and decreases in the AICPI-IW Index.
At present, it is at 50% but with further increase of 12%, it will become 62% thereby giving it relevance for all central government employees, defence service, and pensioners under 7th CPC.
Salary Increment
The hike in pay will translate into a much-needed increment in take-home salary. Given below is an example of how a 12% DA hike will help one central goverment employee:
- Basic Salary: ₹30,000
- Current DA at 50%: ₹15,000
- New DA at 62%: ₹18,600
- Increase in DA: ₹3,600 a month
Across the year, this will mean ₹43,200 gross extra money is placed in the pockets of the central government employee, which at rising costs of commodities is a much-needed change.
Impact on Pensioners
The increase in DA by 12% will also be extended to the pensioners, through Dearness Relief (DR). A pensioner receiving Rs. 20,000 per month as basic pension would get an extra Rs. 2,400 per month, helping in beating inflationary pressures on essentials like food, health, and utilities.
Announcement by the Government Soon
Cabinet having taken a decision, the public announcement is slated for early July 2025. Once notified, the increase in DA shall be deemed to have been in effect from 1 July 2025, with arrears expected to be credited to accounts soon after that with the coming salary.
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