The central government is preparing to raise the dearness allowance (DA) for its employees, which is expected to provide a significant financial boost. According to recent media reports, the government is likely to announce a 3% hike in DA, based on the All-India Consumer Price Index for Industrial Workers (AICPI-IW) data from January to June 2024. If implemented, this increase would raise the total DA to 53% of the basic salary, up from the current 50%.
This increase will benefit both employees and pensioners, impacting around 1 crore families nationwide. The hike is expected to be announced by October 8, although the exact date is still unclear.
Central employees will likely receive this 3% DA hike starting from July 2024, along with arrears to be paid in the following months. If the DA increase is confirmed, salaries will see a significant bump. For instance, an employee earning Rs 40,000 would see an increase of Rs 1,200 per month, translating to an annual raise of Rs 14,400.
There are no concerns that DA will become zero, as the calculation will continue based on existing rules. The 7th Pay Commission has ensured that central employees will continue to benefit from these regular adjustments. The final decision is expected after a cabinet meeting, with official announcements to follow soon.
