The Union Cabinet has approved a 3% increase in Dearness Allowance (DA) for central government employees, bringing the total DA to 53% of basic pay. This timely financial boost comes just before the Diwali festivities, offering relief to employees grappling with rising inflation.
Union Cabinet approves 3% hike in DA for Central govt. staff
To illustrate the impact, an employee with a basic salary of Rs 40,000 will see their monthly DA increase by Rs 1,200, from Rs 20,000 to Rs 21,200. This adjustment will be reflected in October salaries, along with arrears for the past three months. Pensioners will also benefit from a corresponding increase in Dearness Relief (DR).
The DA hike is calculated based on the All India Consumer Price Index (AICPI), demonstrating the government’s commitment to supporting employees in the face of increasing living costs. This increase follows a 4% hike in March 2024, which had previously brought the DA to 50%.
What is DA?
Dearness Allowance or DA, a cost-of-living adjustment paid to government employees, pensioners, and public sector workers, aims to mitigate the impact of inflation on salaries and pensions. It is typically revised twice a year, in January and July, with announcements usually made in March and September.
The government’s decision to approve the hike in October aligns with recent years’ pattern of pre-Diwali announcements, ensuring employees receive financial relief during the festive season. This increase is expected to boost consumer spending and bring cheer to both central government employees and pensioners.
While the 8th Pay Commission remains under discussion, the government’s immediate focus is on addressing inflation through measures like the DA increase. This approval marks a significant step in supporting government employees during challenging economic times.
Apart from DA, what else Central Govt. has done?
As the festive season approaches, this DA hike not only benefits those currently employed but also aids pensioners through increased Dearness Relief, providing crucial support to tackle rising living costs. The move underscores the government’s ongoing efforts to maintain the purchasing power of its employees and pensioners in the face of fluctuating market conditions.
This timely financial boost is set to make the upcoming Diwali celebrations even more special for millions of central government employees and their families, offering a welcome respite from inflationary pressures and enhancing their ability to participate fully in the festive season.
