DA Hike: Central Government Employees May Get 3-4% Increase In Dearness Allowance During Diwali

This Diwali might bring cheer to central government employees. With the festive season approaching, employees are eagerly anticipating a possible increase in their Dearness Allowance. There is an expectation that the DA may be hiked by 3-4% in the month of October, offering some financial relief.

But what's Dearness Allowance and why does it matter?

Dearness Allowance is a cost of living adjustment allowance that central and state government employees receive to offset inflation. It’s aimed at reducing the impact of rising prices on the real income of government employees. The DA ensures that the purchasing power of government employees is preserved even during periods of inflation.

The DA is revised twice a year, once in January and once in July. The government offers such hikes every six months. It is calculated as a percentage of an employee’s basic salary and is based on the inflation data provided by the All India Consumer Price Index.

In March this year, the government implemented a 4% increase in the DA. With that revision, the current DA stands at 50% of the basic pay. Last year, the DA increase was announced in the first week of October, setting expectations for this year as well.

It wasn't just the hike in DA but also in Dearness Relief, which is granted to pensioners. Along with DA, in March 2024, the government also hiked the DR by 4%. At present, over one crore central government employees and pensioners benefit from these allowances.

Regarding the DA hike, although no formal announcements have been made, let's look at some calculations. If an employee has a monthly salary of Rs 30,000 and a basic pay of Rs 18,000, the current DA would be Rs 9,000, as it constitutes 50% of their basic salary.

Now, if there is a 3% hike in the Dearness Allowance, the revised DA will be Rs 9,540 per month. And if the DA is increased by 4%, the updated Dearness Allowance would be Rs 9,720 per month.

The hike is particularly significant as it comes ahead of Diwali, offering additional financial cushioning for employees to manage their expenses during the festive period.

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