DA hike: The central government is going to give a big relief to government employees and pensioners soon. An announcement to increase dearness allowance (DA Hike) can be made before Diwali. It is believed that this time an increase of 3 to 4 percent in DA is possible. If this happens, then there will be a direct benefit in both the salary and pension of the employees.
Why will the salary increase from September?
According to media reports, the reason for the increase in the salary for September is that DA arrears can also be included in it. That is, employees will get the benefit of increased DA along with arrears. The final decision on this can be taken in the cabinet meeting between September and October.
How much will the dearness allowance increase?
At present, dearness allowance is at 55%. If sources are to be believed, it can be increased from 58% to 59%. If there is an increase of 3%, then employees with a basic salary of Rs 18,000 will get about Rs 540 more. At the same time, those with a basic pension of Rs 9,000 will get an additional benefit of about Rs 270.
How is DA decided?
All India Consumer Price Index (AICPI-IW) data is used to decide dearness allowance. If there is a continuous increase in AICPI-IW, then DA also increases. At the same time, there is a possibility of a reduction in DA if it falls.
The formula for calculating DA is as follows:
(12 months average AICPI-IW – 261.42) / 261.42 × 100
Latest AICPI-IW figures
According to the latest data released by the Labor Bureau, CPI-IW was recorded at 143 in March 2025. In April 2025, it increased to 143.5, and in May 2025, it reached 144. That is, there is a continuous increase, which will have a direct impact on dearness allowance.
What is dearness allowance?
Dearness allowance is given to employees and pensioners to give them relief from inflation. It is revised twice every year – in January and July. The government increases or reduces it according to the current inflation rate.