The government employees were rewarded for their hard work and dedication! A great beginning to the new year with the announcement of a huge hike of 4% in Dearness Allowance (DA) by the central government in less than a month for the new year. The decision was made effective from January 1, 2025. The d.a. of centre employees and pensioners now sport an increase of 57%. This is not crossing a psychological milestone, but with everything happening at present in inflation, it is like a sigh of relief.
What Will Be The Impact On Your Salary?
An increase gives you a direct visible effect in your monthly salary. Considering if your basic is Rs 50,000, now you will get Rs 25000 as dearness allowance, and previously it used to be Rs 23000. In other words, Rs 2000 will go to your pocket every month. If calculated for the whole year, this will be an extra Rs 24000, which will help you manage your family budget.
Smile On The Faces Of Pensioners
It is a boon to our pensioners. For example: Suppose if a basic pensioner was getting 30,000, now he would get a DA of Rs 15,000 against an earlier figure of Rs 13,800, meaning additional income of Rs 1,200 every month. This will be very much useful for their medical treatments and for their day-to-day expenses.
Eye On State Governments
As most of us know, states follow the DA pattern of the Central Government. While Kerala, Tamil Nadu, and Maharashtra have already begun steps in this direction, now it is the other states which can soon announce such a change for their employees and thereby benefit thousands more employees and pensioners.
Will The DA Increase Again?
According to economists, if the inflation rate doesn’t change from what has been, another 4 percent hike is possible in DA upto July 2025, thereby putting it to 61 percent!. All will depend on the economy entirely.
Is This Increase Enough?
Despite being a welcome step, most of the employee unions feel that some changes must be made to the formula on which the DA is calculated. They argue that real inflation is better reflected in the employees’ hands in a different cover. Some unions have gone to the extent of demanding that the DA be linked with the basic salary.
Overall, it’s good news for government employees and pensioners, but there’s still a long way to go in terms of improvement. What do you think? Enough? Would like to know your comments below.
Also Read: Retirement Age Hike 2025: Retirement Will Be At 62 Years Instead Of 60? See Details
