DA Hike for Central Govt Employees soon? Modi government likely to announce salary hike THIS Date, Finance ministry to…

To recall, the last DA Hike was announced by the Modi government in October 2024. Union Cabinet approved a 3 percent Dearness Allowance (DA) increase for central government employees.

New Delhi: In a major development that promises to benefit lakhs of Central government employees and pensioners, the Narendra Modi government is likely to announce a bumper Holi bonanza. The government is reportedly planning to announce the next round of DA hikes before Holi. However, it is important to note that there has not been any official confirmation regarding the same from the authorities.

According to the reports, the Dearness Allowance (DA) and Dearness Relief (DR) for employees and pensioners are likely to increase, as the central government is expected to declare it before Holi. Reports further add that the DA and DR are expected to increase by 2 percent this time, as everyone awaits the central government’s official announcement. DA is provided to serving government employees, while DR is given to pensioners.

To recall, the last DA Hike was announced by the Modi government in October 2024. Union Cabinet approved a 3 percent Dearness Allowance (DA) increase for central government employees. A dearness allowance of 53 percent of basic pay is being provided to central government employees, as opposed to the previous 50 percent.

Dearness Allowance (DA) hikes are based on the average All India Consumer Price Index (CPI-IW) for industrial workers, which reflects changes in the cost of living. The government announces a DA/DR hike twice a year. However, the announcements are made in March and September. The hike is applied retroactively every year between January and July.

How It Is Calculated

Consumer Price Index for Industrial Workers (2016=100) – December 2024: The All-India CPI-IW for December 2024 dropped by 0.8 points, settling at 143.7, compared to 144 in November 2024.

The Labour Bureau, under the Ministry of Labour & Employment, compiles the Consumer Price Index for Industrial Workers (CPI-IW) monthly, based on retail prices gathered from 317 markets across 88 key industrial centers in the country.