New Delhi: The Centre is expected to increase the dearness allowance (DA) by 4 per cent, according to various media reports. If approved, it will mark the second increase in both the dearness allowance and dearness aid (DR) this year. The announcement is likely to come in September, which would take the current DA from 50 per cent to 54 per cent.
While the DA is all set to increase, the Centre may still not release the 18-month arrears that have been pending since the COVID pandemic. So far, the central government employees have not received these arrears and there has been no official statement from the government on the matter. Earlier, there were speculations that the DA hike would come into effect from July, but that did not happen.
Recent DA Changes
The Dearness Allowance (DA) for central government employees has recently been increased by 4 per cent, taking it from 46 per cent to 50 per cent, with effect from January 1, 2024. Similarly, the Dearness Allowance (DR) exemption for central government pensioners has also been increased by 4 per cent, taking it to 50 per cent.
How is DA calculated?
The dearness of living benefit is calculated using data from the Consumer Price Index for Industrial Workers (CPI-IW), which is published monthly by the Labor Bureau.
What will the salary increase be?
With the 4 per cent hike in Dearness Allowance (DA), central government employees will receive a significant increase in their salaries, taking the total DA to 54 per cent. For example, if an employee’s basic salary is Rs 40,000, the hike will add Rs 1,600 to his or her monthly salary, totalling an additional Rs 19,200 per year.
Employees with a salary of Rs 60,000 will see a monthly hike of Rs 2,400. However, the government has not yet officially announced the date of this DA hike, though reports suggest that it could be in the first week of September.
What is Dearness Benefit?
Dearness Allowance (DA) is a benefit offered by the central government to its employees and retirees to help them cope with rising prices and the effects of inflation. It is designed to protect government employees from the impact of inflation by providing them with additional financial support.
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