There is every possibility that the central government employees will see a steep surge in Dearness Allowance in the coming months. The AICPI figures of November 2024 have just come in with a miniscule increase from the previous month. The percentage, however, is yet to be finalized, but a steep rise of around 56% is now considered very likely.
Understanding the DA Calculation
The AICPI is one of the most important indexes used to calculate DA. The November 2024 index stood at 144.5 points, which is almost the same as the October index. However, this marginal increase translates into a small hike in DA from the current 55.05% to an estimated 55.54%.
DA is calculated as an average of AICPIs of the six months preceding that. While December 2024 AICPI numbers are pending, the trends so far assure a DA rise of over 56%.
Effects of DA Increase
DA forms the integral part of the employee’s salary. Since it takes away the impact of inflation, the DA will prevent the loss in the employees’ purchasing power.
Trend DA Increases
DA had an upward trend throughout 2024. It received a 3% hike in October 2024, effective from July 1st of the same year. In March 2024, a 4% increase was seen, and it added up to a total DA percentage of 50% of basic pay.
Important Differences: DA vs. DR
Note the difference between DA and DR. DA can be availed by central government employees, but DR is received by pensioners.
Future Prospects
Millions of central government employees in India eagerly await an official announcement of an increase in the DA. Much-needed relief would come in terms of financial boost along with a rejuvenated morale at the government departmental level.
Disclaimer: This article is based on current information and projections. The final DA percentage will be decided according to the official announcement of the government.
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