We are in the last month of the year and now only a few days are left for the new year to come, meanwhile, central employees and pensioners may face a disappointing financial update regarding their dearness allowance (DA). The expected DA hike in January 2025 is estimated to be the lowest in recent years, with an increase of just 2 to 3 percent based on the AICPI index.
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Understanding DA calculation
The central government reviews and adjusts the dearness allowance every six months based on the All India Consumer Price Index (AICPI). Data available till September 2024 shows that DA has already reached 54.49 percent. AICPI data for October, November, and December are still pending, and the final figures may change the DA increase slightly.
What the latest AICPI data reveals
According to Labour Bureau data, the AICPI index stands at 143.3 points as of September 2024. Based on this data, the dearness allowance for central employees increased to 54.49 percent. Data for the next few months, which are crucial for calculating the DA for January 2025, are still awaited.
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Expected DA hike in January 2025
DA by July 2024: 53%
Expected DA in January 2025: 56%
Based on the ongoing trend and current index values:
By October 2024, the AICPI index is expected to reach 143.6, taking the DA to around 54.96%.
In November, the index may touch 144 points, taking the DA to 55.41%. By December, this trend could reach 144.6 points, taking the DA to a possible 55.91%. Despite these modest increases, the overall DA hike is expected to be capped at just 3% in January 2025, providing a minimal increase for central employees and pensioners in the new year.
