Central government employees are hopeful for a dearness allowance (DA) hike in March 2025.The 8th Central Pay Commission (CPC) is expected to be constituted soon, with its work likely commencing in April 2025. Meanwhile, the DA rate is determined by the central government based on the All India Consumer Price Index for Industrial Workers (AICPI-IW), published periodically by the Labour Bureau in Shimla.
Recent data from the Labour Bureau indicates that the AICPI-IW dropped by 0.8% to 143.7 in December 2024. Due to this slowdown in CPI inflation, which directly influences the DA calculation, media reports suggest that government employees may receive a modest 2% DA hike this month. If implemented, this would raise the DA rate from 53% to 55% of basic pay.Employee representatives also anticipate a 2% increase.
Profit recently quoted Rupak Sarkar, president of the Confederation of Central Government Employees and Workers, confirming this expectation based on internal calculations. Similarly, Shiv Gopal Mishra, secretary of NC-JCM (Staff Side), mentioned the likelihood of a 2% DA hike.As per the recommendations of the 7th Pay Commission, DA hikes are typically announced in March and implemented retrospectively from January 1. While the government is expected to finalize the chairperson and members of the 8th Pay Commission in the coming weeks, employees are looking forward to an official decision on the DA revision.The final approval for the DA hike will rest with the Union Cabinet, chaired by Prime Minister Narendra Modi.
