Happy New Year for the employees with a token of New Year gift from the government. Employees would now be getting relief from inflation (DA hike) during the New Year’s good news from them. There is a new great jump in dearness allowance this time. It is reporting that dearness allowance will give a good jump.
As per the AICPI Index data, the dearness allowance of the employees is increasing by 3 percent. Recent trends say that this dearness allowance can touch the 56 percent mark. Employees will benefit from inflation (DA hike in January 2025) through this.
Know how the increase is happening
If we talk concerning the current AICPI Index, the boost to dearness allowance can go to 56 percent this time. If that much increase in dearness allowance materializes, then it will be a direct benefit to the employees. This way, one calculation is also coming out. The figures of AICPI index have come till October. The same sign can be seen in November and December as well. That way, we can say that there might be a 3 percent increase in dearness allowance (DA).
Know what are the inflation figures for the half year now
The government estimates inflation before increasing dearness allowance (DA Hike). For this, the AICPI Index tracks the changes in inflation and prices of various commodities across the country. The half-yearly figures of July, August, September and October 2024 are released. According to them, in July the figure was at 142.7. Due to this D.A has reached to 53.64 percent.
Though the index scaled a peak of 142.6 in August, dearness allowance (DA) also reached 53.95 percent. The figure went up and hit 143.3 in September. That places dearness allowance at a score of 54.49 percent. At the same time, October figures showed that the index stood at 144.5. If this is the case, dearness allowance goes to 55.05 percent. Currently applicable DA from July 2024 is 53%.
When will the new dearness allowance be announced
The Centre constantly keeps assessing phenomena pertaining to inflation. As such, dearness allowance (DA) is re-evaluated or revised every 6 months. To tell you, there was an increase of 3 percent in dearness allowance in July (DA Hike in July). Moreover, another increase is appearing in January 2025 to get 3 percent (DA hike in January 2025). With this increase, benefits will accrue to one crore employees and pensioners. The allowance becomes effective for central employees from January 2025; it may be announced in March 2025. After this period, the employees will get the money in arrears.
This is the Three Percent Rise Reason
In other words, till October, the count of the AICPI index reaches about 144.5 points. That is why DA has been associated with 55.05 Percent. If the part-November, part-December trends hold, I can see that the index can reach 145 points in November. Therefore, DA will come at about 55.59. For December, the AICPI Index is pegged at 145.3 points. By that measure, DA can be expected to show a good rise and reach as high as 56.18 percent with the above. Thus, three miles may be added in this May to dearness allowance.
Understand how salary increases with dearness allowance
Dearness allowance (DA) is included in the salary directly paid to employees. Different basic salaries are there for employees, and here, adding TA DA gives gross salary. With regard to the pay-grade as per the recommendations of the 7 th Pay Commission, the employees with minimum basic can have an annual addition of Rs 6480. With the basic salary of Rs 18,000, DA increases to 56 percent and this could raise a salary to INR 10,000.
Applying dearness allowance (DA Hike in 2025) from January 2025, with the basic salary of Rs 18,000, dearness allowance would be Rs 10080 per month at the rate of 56 percent. And in the former, the 53 percent dearness allowance on 18000 becomes a monthly value of Rs 9540. This means that the dearness allowance increments by three percent and that can change the salary by 540 each month (salary hike news).
