DA Increase : It is common knowledge that the central government revises the Dearness Allowance (DA) for its employees and pensioners twice a year. These revisions happen in January and July, and are based on the AICPI Index (Consumer Price Index for Industrial Workers), which is released every month. So, if you’re wondering when and how much the next DA will increase, here’s everything you need to know.
Recent DA Increase and What’s Coming Next
So far, in January 2025, the government increased the DA by 2%, bringing it to 55%. Now, the next increase is expected in July 2025, which could bring the DA to 57% or even 58% depending on the AICPI index. The data for April 2025 will be released on May 30, which will give us a clearer picture of how much the DA might increase in July.
How Are the DA Figures Calculated and What’s Likely to Happen?
Let’s take a look at the numbers from January, February, and March. In January 2025, the AICPI index was 143.2, but in February 2025, it fell to 142.8. However, in March 2025, it increased by 2 points, bringing it back to 143.0, resulting in a DA score of 57.06%. Now, if the next three months (April, May, June) show good figures, we can expect a 3% increase in DA. But if the figures fall, we might see a 2% increase, like we did earlier in January.
What if DA Increases to 57% or 58%?
Let’s say in the next three months, the AICPI index shows positive growth and crosses 58% for DA. In that case, a 3% increase is possible. For example, if an employee’s basic salary is ₹18,000, with 57% DA, they would get ₹10,260, and with 58% DA, they would receive ₹10,440.
How is Dearness Allowance Calculated?
The calculation of DA for central government employees and pensioners is done using a specific formula. The formula is based on the 7th Pay Commission and works like this:
Formula:
\text{DA %} = \left( \frac{\text{12-month average AICPI IW} – 261.42}{261.42} \right) \times 100
For example, if the 12-month average AICPI IW is 392.83, the DA percentage comes out to 50.26%. This means the government can increase the DA by up to 50%, based on the formula, for employees and pensioners.
Conclusion:
The Dearness Allowance (DA) increase provides relief to employees and pensioners. However, the increase depends entirely on the AICPI Index figures. The next few months will be crucial as the data will determine the DA increase for July 2025. If you’re expecting the DA to rise from 55% to 57% or 58%, it will all depend on the upcoming figures. Therefore, May 30 will be a key date to watch for clarity on how much the DA will increase.
Read More
5 Easy Ways to Pay Off Your Personal Loan Faster and Save on Interest
Lost Your Aadhaar Card Here’s How to Recover It Quickly
Want ₹10 Lakh Here’s How ₹5000 Monthly SIP Can Get You There
Dailynews24 App :
Read the latest News of Country, Education, Entertainment, Business Updates, Religion, Cricket, Horoscope Here. Read Daily Breaking News in English and Short Video News Covers.
