Government announces 3% DA hike for 1 crore employees, pensioners
The Union Cabinet, headed by Prime Minister Narendra Modi, has approved a 3% hike in the dearness allowance (DA) ahead of Diwali. The move will benefit over one crore central government employees and pensioners. The hike will increase the allowance from 50% to 53% of basic pay, giving much-needed financial relief ahead of the festive season as inflation hovers at a 9-month high of 5.5%.
DA hike to be effective from July 1, 2024
The announced DA hike will likely be effective from July 1, 2024. This means that employees will also get arrears for the months of July, August, and September. For an entry-level government employee drawing a basic salary of ₹18,000 per month, this hike would mean an additional ₹540 in their take-home pay. The latest hike comes after a previous 4% increase in March 2024, which brought the DA to 50%.
DA hike aims to counter inflationary pressures
The DA is revised on the basis of the All India Consumer Price Index (AICPI), which tracks changes in retail prices and brings employees' salaries in line with rising living costs. For pensioners, the term used is Dearness Relief or DR and it now stands at 53% of the basic pay—same as DA for serving employees. Amid persistent inflation, this hike will ease some of the financial burden.
