DA Hike: The central government has finally announced a 3% increase in dearness allowance for central employees. According to NDTV news, a 3% increase in dearness allowance (DA) has been approved for central government employees. This increase will benefit more than one crore central employees and pensioners nationwide.
Employees were waiting for a long time for the increase in DA. Now, the central employees have a Diwali gift from the government. The Union Cabinet led by PM Narendra Modi has approved the increase in dearness allowance. According to a Media report dearness allowance has been increased by 3%. Generally, the central government assesses and adjusts DA twice yearly in January and July.
How much will the salary of employees increase?
The increase in DA means that the employees’ salary will increase now. This increase will be based on the basic salary of the employees. The main objective of the increase in DA is to relieve employees of inflation.
Let us tell you that the last DA adjustment, a hike of 4%, was announced in March, effective from January 2024. After that, central government employees were eligible for DA of 50% of their basic salary, while pensioners got DR of 50% of their basic pension. The increase in DA and DR will provide financial relief to about 1.15 crore central government employees and pensioners.
Presently, DA is 50%, and now the government has increased it by 3%. 53% DA has come into effect from July 1, 2024.
Let us tell you that after this increase in dearness allowance, one central government employee and pensioner will get the salary for October along with three months’ arrears and increased DA. The DA hike in July is announced around Diwali in October or November.
For your information, let us tell you that the calculation of DA given to the employees is related to AICPI, which tracks retail inflation in the last 12 months.