Big Pay Boost in 2025
The central government has exciting news for its employees and pensioners. It is assumed that there will be an addition to the current Dearness Allowance (DA) and Dearness Relief (DR) post January, 2025. This increase will help them to be paid better salaries and better pensions, and make life a bit bearable.
How DA and DR are Decided
The Indian Ministry of Labour examines the All India Consumer Price Index (AICPI) every six months to determine the DA and DR allowances for employees and pensioners. These increases are in proportion with the ways inflation is reflecting on the cost of basic necessities.
The DA and DR for the fiscal of January 2025 will then be accordingly fixed by considering the AICPI of June 2024 to December 2024. For the update in July 2025, the data will include the period between January and June 2025.
New Rate of AICPI and Predicted Hike in DA
Specifically, the AICPI index stood at 143.3 in September 2024, or slightly higher than in the previous months. This may imply that the DA for government employees may go up possibly to an average of 54 %. This increment will assist the employees in managing ission inflationary trends in the market.
Recent 3% DA Increase
Before this, in October 2024, the government raised the DA by 3% for the hike to be implemented on July 2024. This increased the DA to 53% thus gave the employee a good flavoured addition on their salaries.
The 8th Pay Commission What’s Coming Next?
They are even talking about the 8th Pay Commission, through which another big hike in salary can be expected. While we are yet to hear it from the government, a commission might be on the way, though not before early part of 2025.
If the 8th Pay Commission is implemented:
- The minimum wages that can be paid to employees could increase from Rs 18,000 to Rs 34,560, or even more, 52% increase.
- The maximum salary may increase from Rs 2.5 lakh to Rs 4.8 lakh per month, an increase of 92 percent.
- For pensioners, minimum pension can rise from Rs 9,000 to Rs 17,280 and maximum pension can go up to Rs 2.4 lakh from Rs 1.25 lakh now.
Next Meeting and Expected Salary Increase
The future meeting of the Joint Advisory Committee will be held to discuss the 8th Pay Commission. If things go smoothly, we should be able to see the DA and DR rising by January 2025 officially and a subsequent hose to employees and pensioners in government.
