Government employees and pensioners eagerly await periodic increases in dearness allowance (DA). Recently, the Gujarat government brought good news for its employees and pensioners. On Wednesday, the state government announced a 3 per cent hike in dearness allowance. According to PTI (a news Source in India), this increase raises the DA for around nine lakh employees and pensioners to 53 per cent of the basic salary.
Arrears Payment Timeline
As per the announcement, the decision will be effective retroactively from July 1, 2024. The Finance Department has issued a proposal to increase the DA from the existing 50 per cent to 53 per cent of basic pay under the Gujarat State Service (Pay Revision) Rules, 2016. This move will benefit more than nine lakh employees and pensioners.
The arrears for the period from July to November 2024 will be paid in January 2025, along with the December salary and pension. Employees of state government departments, panchayats, and teaching and non-teaching staff in secondary and higher secondary schools, as well as employees of aided non-government schools under the Seventh Pay Commission, will be entitled to this hike.
Additional Beneficiaries
The government also announced that this benefit will extend to primary teachers and employees working on deputation or transfer in panchayats, provided they are covered under approved salary revisions as per the commission. The increase in DA, from 50 per cent to 53 per cent of basic pay effective from July 1, 2024, had been under government consideration. After a thorough review, the new rate of DA at 53 per cent of basic pay has been approved.
Expected DA Hike in January 2025
Based on the October 2024 data, the All-India Consumer Price Index (AICPI) rose to 144.5 and is expected to increase to 145.3 with the November and December figures. This could lead to a rise in the dearness allowance (DA) to 56% in January 2025. Currently, the DA for government employees is at 53%, following the hike announced in October 2024 before Diwali.
When Will the Next DA Hike Be Announced?
The Central Government will require the AICPI data for November and December 2024 to make the next announcement. The November data is expected in the first week of January 2025, while December’s numbers will be available in February. Based on previous patterns, the DA hike announcement is likely by the end of February 2025, with arrears for employees and pensioners provided afterwards.