7th Pay Commission DA Hike. Another good news for central employees in September 2024. After the Unified Pension Scheme [UPS], this month employees of the central government are also get’s the benefit of hike in dearness allowance [DA]. It is expected that the government can announce a 3 to 4% DA hike in the 3rd week of September.
3-4% increase expected in DA
The government will increase the dearness allowance [DA]by 3-4% in the 3rd week of September. An increase of 3% has been confirmed, but it can also be 4% . According to sources, earlier in March 2024, the government can increased the DA by 4% to 50% of the basic salary.
Along with this, Dearness Relief [DR] for pensioners was also be increased by 4%. Dearness Allowance [DA] is given to Central Government Employees, while Dearness Relief (DR) is given to the pensioners. DA and DR are increased 2 times a year in January and July month.
Will central employees also get COVID-19 DA arrears?
In the recent monsoon session of Parliament, Minister of State for Finance Pankaj Chaudhary said that the government is unlikely to release 18 months of DA and DR arrears withheld during the COVID-19 pandemic. In response to a question either the government is considering to release 18 months of Dearness Allowance or DR for central employees and pensioners. The decision to freeze three instalments of DA/DR from January 2022, July 2020 and January 2021 for central employees and pensioners was taken to reduce the pressure on government finances due to economic crises during the COVID-19 pandemic.
Will more than 50% of DA be merged in basic pay?
According to experts, if the DA is more than 50%, it will not be merged in the basic salary. However, the other allowances are like house and rent allowance etc. have been increased. Various organizations of central employees demands the formation of a pay commission. However, the government does not have any plan to form the 8th Pay Commission right now.