Central employees might be in for some good news ahead of Holi. The government is considering a boost in the dearness allowance (DA) and dearness relief (DR) for over 1.2 crore central staff. If this goes through, employees will see an increase in their salaries. Typically, the government raises DA twice a year: once around Holi in January and again around Diwali in July.
Last year, the cabinet approved a DA hike on March 4, raising it by 4%, which brought it from 46% to 50%. Then, in October, there was another increase of 3%, pushing it up to 53%. Right now, the DR stands at 53% as well.
So, what can we expect this time around? There’s speculation that a 2% increase in DA might be on the table, but it could vary. The final decision will come from the cabinet meeting. If the DA does go up by 2%, it would rise to 55%. A cabinet meeting took place in Delhi on March 5, but no decision was made regarding the DA and DR increase. However, an announcement could be coming soon.
What does this mean for your salary? If an employee’s basic salary is Rs 18,000, a 2% DA increase would add Rs 360 to their monthly pay. For a basic salary of Rs 20,000, the increase would be Rs 400.
On top of that, the government has also announced the formation of the 8th Pay Commission, which is expected to roll out next year. This could lead to a significant boost in salaries and pensions for central employees. Reports suggest that the government might phase out the old allowances and introduce new ones after the 8th Pay Commission is implemented.