DA Hike: The Modi government is expected to give central employees a big gift before Diwali. The government can increase central employees’ dearness allowance (DA) by 4%. A 4% DA increase will result in a significant salary increase, which will work like a booster in inflation.
The increased DA will benefit about one crore families. The central government has already denied the formation of the 8th Pay Commission. Since then, central employees have eagerly waited for the DA hike. The increased DA rates will be considered effective from July 1, 2024. On the other hand, the government has not announced the date of the increase in the DA of central employees. Media reports are talking about before Diwali.
DA of central employees will increase by this much per cent
If the Modi government at the Center increases the DA of central employees by 4 per cent, it will increase to 54 per cent. Currently, central employees are receiving 50 per cent DA. Earlier, 4% DA was increased in March. The increased DA rates were implemented from January 1, 2024.
If the central government increases the dearness allowance by 4%, then these rates will be considered applicable from July 1, 2024. As per the rules of the Seventh Pay Commission, the central government increases DA twice every year and once every half-year. DA rates are implemented from January 1 and July 1. Now, there is talk that the government may announce a gift of DA before Diwali in the month of October.
8th Pay Commission will not be formed
The Central Government has also clarified the situation on the 8th Pay Commission. State Finance Minister Pankaj Chaudhary ruled out the possibility of forming the 8th Pay Commission a few days ago. He said that the government does not have any proposal in which the implementation of the 8th Pay Commission can be considered.
The government implements a new pay commission every ten years. If the 8th Pay Commission had been formed now, it would have been implemented in 2026. The government’s refusal has dashed the hopes of central employees.