DA hike: Ahead of Diwali, Centre announces 3% Dearness Allowance hike for govt employees, pensioners. Check details
DA hike: Ahead of Diwali, Centre announces 3% Dearness Allowance hike for govt employees, pensioners. Check details
The proposed increase of 3% by the government will raise the DA and DR to 53%, effective July 1, 2024, from 50%. This adjustment will bring considerable benefits to central government employees.
Business Today Desk
- Oct 16, 2024,
- Updated Oct 16, 2024 3:34 PM IST
The Centre on Wednesday approved a hike in Dearness Allowance (DA) by 3% for central government employees and pensioners ahead of Diwali. Before this, the Dearness Allowance (DA) was 50%. The proposed increase of 3% by the Central government will raise the DA and DR to 53% of the basic pay, effective July 1, 2024.
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With the 3% Dearness Allowance (DA) increase, an entry-level central government employee, with a starting salary of around Rs 18,000 per month, can expect a raise of about Rs 540 per month, starting from July 1, 2024. The employee will get arrears for July, August, and September. This adjustment will bring considerable advantages to central government employees.
The financial implication of 3% DA hike this time will be Rs 9, 448 crore. This decision is expected to positively impact around 49.18 lakh central government employees and 64.89 lakh pensioners.
The last recent DA adjustment, a 4 per cent increase, was announced this March, which was effective from January 2024.
The Dearness Allowance (DA) plays a vital role in the remuneration system for more than 10 million central government employees and pensioners, serving as a safeguard against inflation. By pegging salary revisions to the Consumer Price Index (CPI), the DA guarantees that employees' compensation keeps pace with escalating living expenses, providing a financial cushion during periods of inflation.
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The Dearness Allowance (DA) is increased by the Centre twice a year, with adjustments effective in January and July. The announcements are typically made in March and September, with the January DA hike usually announced around the time of Holi in March, and the July hike declared around Diwali in October or November each year.
In another news, Chhattisgarh Chief Minister Vishnu Deo Sai on Wednesday announced that the Dearness Allowance (DA) for state government employees will be raised by 4% ahead of Diwali and festive season, bringing it to 50% of the basic salary. This increase will be implemented starting from October 1, benefiting approximately 3.9 lakh state government employees.
Making the announcement on social media platform X, the Chief Minister’s Office (CMO) of Chhattisgarh wrote: “Chief Minister’s big announcement before the cabinet meeting – Dearness Allowance increased by 4%. The CM has given a Diwali gift to state employees, announcing an increase in the dearness allowance from 46% to 50%. State employees will benefit from this revised dearness allowance starting October 1.”
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In March of this year, the state government-led by CM Sai increased the dearness allowance to 46% of the basic pay. Following suit, the Himachal Pradesh government also demonstrated support for state employees by implementing a 4% hike before Diwali. This move will benefit around 180,000 employees and 170,000 pensioners in the state.
The Centre on Wednesday approved a hike in Dearness Allowance (DA) by 3% for central government employees and pensioners ahead of Diwali. Before this, the Dearness Allowance (DA) was 50%. The proposed increase of 3% by the Central government will raise the DA and DR to 53% of the basic pay, effective July 1, 2024.
Advertisement
With the 3% Dearness Allowance (DA) increase, an entry-level central government employee, with a starting salary of around Rs 18,000 per month, can expect a raise of about Rs 540 per month, starting from July 1, 2024. The employee will get arrears for July, August, and September. This adjustment will bring considerable advantages to central government employees.
The financial implication of 3% DA hike this time will be Rs 9, 448 crore. This decision is expected to positively impact around 49.18 lakh central government employees and 64.89 lakh pensioners.
The last recent DA adjustment, a 4 per cent increase, was announced this March, which was effective from January 2024.
The Dearness Allowance (DA) plays a vital role in the remuneration system for more than 10 million central government employees and pensioners, serving as a safeguard against inflation. By pegging salary revisions to the Consumer Price Index (CPI), the DA guarantees that employees' compensation keeps pace with escalating living expenses, providing a financial cushion during periods of inflation.
Advertisement
The Dearness Allowance (DA) is increased by the Centre twice a year, with adjustments effective in January and July. The announcements are typically made in March and September, with the January DA hike usually announced around the time of Holi in March, and the July hike declared around Diwali in October or November each year.
In another news, Chhattisgarh Chief Minister Vishnu Deo Sai on Wednesday announced that the Dearness Allowance (DA) for state government employees will be raised by 4% ahead of Diwali and festive season, bringing it to 50% of the basic salary. This increase will be implemented starting from October 1, benefiting approximately 3.9 lakh state government employees.
Making the announcement on social media platform X, the Chief Minister’s Office (CMO) of Chhattisgarh wrote: “Chief Minister’s big announcement before the cabinet meeting – Dearness Allowance increased by 4%. The CM has given a Diwali gift to state employees, announcing an increase in the dearness allowance from 46% to 50%. State employees will benefit from this revised dearness allowance starting October 1.”
Advertisement
In March of this year, the state government-led by CM Sai increased the dearness allowance to 46% of the basic pay. Following suit, the Himachal Pradesh government also demonstrated support for state employees by implementing a 4% hike before Diwali. This move will benefit around 180,000 employees and 170,000 pensioners in the state.
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