The Dearness Allowance (DA) represents a crucial component of salary for central government employees, designed to offset the impact of inflation and rising living costs. As we enter 2025, employees are eagerly anticipating potential changes in their DA rates, which are calculated based on the All-India Consumer Price Index (AICPI).
The upcoming DA revision is expected to bring significant financial relief to over 1 crore central government employees and pensioners, with projections indicating a potential increase to 56% in January 2025.
DA Rates Overview
| Key Details | Information |
|---|---|
| Current DA Rate | 53% |
| Expected DA Rate | 56% |
| Calculation Basis | AICPI Index |
| Revision Frequency | Twice yearly |
| Minimum Salary Impact | ₹540 increase |
| Maximum Salary Impact | ₹7,500 increase |
| Pensioner Benefit Range | ₹270 – ₹3,750 |
Calculation Methodology
- Formula: [(Average AICPI for past 12 months – 115.76) / 115.76] x 100
- Base Year: 2001
- Evaluation Periods: January-June, July-December
Expected Financial Impact
- Minimum Salary Employees:
- Current: ₹18,000
- Potential Increase: ₹540
- Maximum Salary Employees:
- Current: ₹2,50,000
- Potential Increase: ₹7,500
Key Highlights
- AICPI Index: Reached 144.5 in October 2024
- Projected Index: 145.3 in November-December
- Announcement Timeline: Expected by February 2025
- Arrears: Likely to be provided with announcement
Eligibility Criteria
- Central government employees
- Central government pensioners
- Active service or retired status
- Employed before January 2025
Pensioner Benefits
- Minimum Pension: ₹9,000
- Potential Increase: ₹270
- Maximum Pension: ₹1,25,000
- Maximum Potential Increase: ₹3,750
Conclusion
The 2025 DA Rates Table promises a significant financial boost for central government employees, reflecting the government’s commitment to supporting its workforce amid rising living costs. 
Stay Informed! Watch for official announcements in the coming months.
