DA Hike News: Good news for state government employees. State employees are set to receive a two percent boost in their dearness allowance shortly. An official announcement regarding this increase may be made alongside the April salary, which will be disbursed in May. With this adjustment, the dearness allowance will rise to 55 percent, up from the current 53 percent.
It’s important to mention that just a few days ago, the Central Government approved a similar two percent increase for its employees. The State Government typically follows suit, implementing the increase for its employees only after the Central Government does.
The increase in dearness allowance is on the horizon
Plans are underway to propose a higher dearness allowance rate for state employees, and this proposal will soon be presented to the Chief Minister. If approved, around 16 lakh state employees will benefit from this increase.
Additionally, approximately 12 lakh pensioners will also see their dearness relief rise by two percent. Employees can expect to receive the enhanced dearness allowance starting in January, with the government covering the arrears from previous months through their provident fund accounts and national savings certificates.
Dearness Allowance is updated two times a year
As per the guidelines of the 7th Pay Commission, the government makes adjustments to the DA twice annually. The first update kicks in January and is typically revealed in March. The second update takes effect in July and is announced in September.
How is dearness allowance determined?
The increase in dearness allowance is based on the All India Consumer Price Index for Industrial Workers (AICPIN-IW). This index reflects the inflation rate and the prices of consumer goods across the country. The government calculates the DA increase by averaging this index over a six-month period.