Major news for government employees. Central government employees have been eagerly anticipating the announcement regarding an increase in their dearness allowance, and it seems their wait is about to come to an end. Media reports indicate that a final decision will be made during the cabinet meeting scheduled for March 19, led by Prime Minister Narendra Modi. For employees, this increase is referred to as Dearness Allowance (DA), while pensioners receive it as Dearness Relief (DR). This adjustment will benefit all government employees and pensioners alike.
DA Expected to Rise to 55%
Reports suggest that the government may announce a 2 percent increase in the dearness allowance, raising it from 53 percent to 55 percent. The dearness allowance is adjusted twice a year, in January and July, to help employees cope with inflation. It constitutes a significant portion of their salary, calculated as a fixed percentage of the basic pay.
For instance, if an employee’s basic salary is Rs 1 lakh, a 2 percent increase would raise their DA to Rs 55,000. This adjustment will directly enhance the take-home salary of government employees.
Salary Impact
An entry-level employee with a basic salary of Rs 18,000 will see a direct benefit from this 2 percent DA increase. Currently, this employee receives Rs 9,540 under the 53 percent DA. With the new increase, the DA will rise to Rs 9,900, resulting in an additional Rs 360. If the DA were to increase by 3 percent, it would reach Rs 10,080, providing a total increase of Rs 540.
3 Percent Increase in DA Expected in July 2024
The government last raised the dearness allowance by 3 percent in July 2024, moving it from 50 percent to 53 percent. Another increase is now anticipated, which will offer further relief to employees.