DA Hike Eagerly Awaited: Why Is There Delay In Govt Announcement? Check Probable Reasons

The government announces a DA/DR hike twice a year. However, the announcements are made in March and September. The hike is applied retroactively every year between January and July.

In the July–December 2024 boost last year, the DA was increased from 50 percent to 53 percent of basic pay. This was announced in October before Diwali, giving central government employees a big gift ahead of the holiday. This time, though, the anticipated pre-Holi declaration did not come to pass, which was unusual.

Stakeholders had expected that the matter would be discussed during a cabinet meeting on March 18. But since no formal confirmation was given, the parties are in a state of uncertainty about what will happen next.

The delay has already lasted more than a week longer than it usually does. Discussions about possible procedural holdups or wider economic factors have arisen as a result of the delay. Although the administration has not made any formal remarks, there might be several reasons why the delay might have occurred. These might result from a couple of reasons. Let's check out.

The All India Consumer Price Index for Industrial Workers (AICPI-IW), which is used to determine the dearness allowance of employees in both the public and private sectors, is the appropriate indicator of general inflation. In January 2025, the AICPI-IW fell 0.5 points to 143.2, suggesting that inflationary pressures were somewhat abating. This variation could have led to further consideration to bring the raise into line with economic realities.

The central government has approved the setting up of the 8th Central Pay Commission to revise the salaries of central government employees and pensioners' allowance. The 8th Pay Commission is scheduled to come into effect in January 2026 and is anticipated to have an impact on long-term pay structures.

A potential amalgamation of DA with basic pay is being discussed, which would raise the basic salaries and might result in a sharper salary hike when the 8th Pay Commission is implemented. If this happens the government has to adapt the present hike to prevent more significant changes in the future.