Should all go well, celebrations for central government employees may be in store come 2025 as speculations about possible salary increases and bonuses have kept hitting headlines. Reports suggest a possibility of considerable salary and financial benefits under the 7th Pay Commission for employees. Let’s delve into the details and find out what changes are expected and how they may affect the central employees.
Expected Salary Hike Under 7th Pay Commission
The long-awaited change that is number 1 on the list is the Dearness Allowance (DA) increase. DA is adjusted once in six months to neutralize the impact of inflation. At this moment, employees are eagerly awaiting the announcement of the pending DA increase, which is set to be around 3% to 4%. If approved, this increase would be an additional boost to the in-hand salary of millions of central government employees.
The new DA will be calculated based on AICPI data. So the government may theoretically increase its percentage so as to maintain a certain purchasing power of the employees with growing inflation.
Bonus Announcement Likely
To make matters even sweeter, some news make the rounds that a productivity Linked Bonus (PLB) would also be announced for all qualifying employees. This bonus is for non-gazetted employees working in a department that has shown productivity. Bonuses are generally given as an economic relief to employees in anticipation of being the major festive seasons or announcements from the government.
While the probable amount and eligibility criteria regarding the bonus 2025 are yet to be made known and finalized, employees are anticipating a substantial amount.
Effect On Pensioners
The DA increase will also benefit the pensioners due. The government usually raises DA for all retired central employees at the same percentage, thus allowing for the pension payment to be adjusted against increases in general inflation.
Implementation Timeline
Regarding the official date, there have been no related confirmations, but the messages are that the government will probably render notifications in a few months. Various reports maintain that the salary hike along with the announcement for bonus may take place before the onset of the new financial year beginning in April 2025.
Conclusion
With the proposed salary hikes and bonuses, central government employees will be provided with timely financial support against inflation. Consequently, employees should keep an eye on notifications from the government to ascertain what actual benefits are going to come their way. For now, they can await what is expected to be a very prosperous 2025.
Also Read: Big Banking Changes From April 1: How UPI & ATM Rules Will Affect You