DA: There is great news for around 1 crore central government employees and pensioners, as the government is expected to announce a dearness allowance (DA) hike following a cabinet meeting scheduled for Wednesday, October 9. The cabinet, chaired by Prime Minister Narendra Modi, will meet at 10:30 AM, and after the meeting, the government is likely to make an official announcement regarding the DA increase.
DA Hike Before Diwali: 3% to 4% Increase Expected
Reports suggest that the Modi government is set to offer central employees a Diwali gift by increasing the dearness allowance by 3% to 4%, raising the current 50% DA to 53% or 54%. While the increase will be announced in October, it will be applied retroactively from July 1, meaning central employees and pensioners will receive three months’ DA arrears in their October salary. Additionally, they can also expect a Diwali bonus.
DA Likely to Reach 54%
This potential increase comes after the government already raised the DA by 4% in March 2024, bringing it up to 50%. If the current hike pushes it to 54%, it will be a significant boost for central employees. The DA, which is reviewed every six months, is typically implemented from January 1 and October 1 each year.
Salary Increase for Central Employees
Dearness allowance is a crucial component of the salary for government employees and pensioners, as it helps offset inflation. The DA is calculated based on the All India Consumer Price Index (AICPI). For employees with a basic salary of ₹18,000, a 3% DA hike would raise their monthly DA from ₹9,000 to ₹9,540. If the hike is 4%, it could go up to ₹9,720.
Relief Ahead of Festive Season
The announcement of a DA hike in October is expected to bring much-needed financial relief for employees and pensioners, especially with the festive season approaching. The increased DA will help employees manage rising inflation, and the Eighth Pay Commission discussions are also underway, further promising improvements for central employees. With the festive season around the corner, many are eagerly awaiting this DA increase as a Navratri gift.
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