Central Govt Employees may get Salary Revision Like Private Sector instead of Pay Commission
Central government employees in India are gearing up for a major salary hike expected in January 2025. Reports indicate that a 3% increase in the Dearness Allowance (DA) is on the horizon, bringing the DA to 56%. This news has sparked excitement among employees and pensioners, who eagerly await financial relief amid rising living costs. However, the implementation of the 8th Pay Commission is still in doubt. As per reports, the Government is planning to introduce salary revisions like private sector. The salary revisions will take place based on performance of employees.
The government is planning to shift from the traditional Pay Commission structure to an annual Performance-Based Pay System. Instead of waiting for periodic Pay Commissions, salaries would be revised annually, considering employee performance and inflation trends. This model is expected to substantially benefit employees and pensioners by ensuring regular and significant pay adjustments.
DA Increase in January 2025
The All-India Consumer Price Index (AICPI) figures until October 2024 have already been released, with November’s data also available. However, December’s numbers are still awaited. Once the final figures are out, the government will announce the official DA hike for January 2025. Current trends suggest a 3% increase, aligning with the index’s movement.
If implemented, this adjustment will directly impact the salaries and pensions of millions. For instance, employees and pensioners currently receiving 53% DA will see this figure rise to 56%, offering a significant financial boost.
Budget 2025-26 and DA Arrears
Finance Minister Nirmala Sitharaman is set to present the Union Budget for 2025-26 on February 1, and central government employees are optimistic about more good news. One of the most anticipated announcements is the resolution of pending DA arrears, which were withheld during the COVID-19 pandemic.
These arrears, delayed for 18 months, have been a longstanding demand of employees and pensioners. The payout is expected to vary based on an individual’s salary and grade. For example:
- Level 1 employees may receive arrears ranging from ₹11,800 to ₹37,554.
- Level 13 employees could see payouts between ₹1,44,200 and ₹2,18,200.
A final decision on arrears is likely to be announced during the Budget presentation.
High Hopes for 2025
With the DA hike, potential arrears resolution, and a new pay system under consideration, 2025 is shaping up to be a year of significant financial improvement for central government employees. These updates highlight the government’s efforts to support its workforce while addressing inflation and other economic challenges.
