DA Hike: Central government employees and pensioners are expected to receive a significant boost in their November salaries, with a likely 4% increase in Dearness Allowance (DA) and Dearness Relief (DR) rates. Sources suggest that the proposal for this increase has been prepared and will soon be sent to the Union Cabinet for approval. The announcement may be made just before Diwali, continuing the tradition of providing this benefit around the festive season.
Last year, the Union Cabinet approved an additional installment of DA/DR on October 18, and the new rates were implemented retroactively from July 1, 2023. Over 48.67 lakh government employees and 67.95 lakh pensioners benefited from the adjustment. At present, DA/DR is being provided at 50%, and if this anticipated 4% increase is approved, it will rise to 54%.
Historical Context and Festive Timing
In the past, the government has aligned DA/DR increases with the Diwali festival. In 2022, a similar 4% hike in DA was announced on September 28, with Diwali being celebrated on October 24. Last year, Diwali fell on November 12, and the Cabinet approved the DA/DR increase on October 18. This year, with Diwali expected to fall in late October or early November, it is likely the increase will be approved around the Dussehra festival.
Delayed Announcement Sparks Employee Concerns
Despite expectations for timely announcements, the delay in releasing DA/DR increases has caused frustration among central government employees and pensioners. SB Yadav, General Secretary of the Confederation of Central Government Employees and Workers, voiced concerns about the delays, citing dissatisfaction due to the deferred payments. Yadav pointed out that in previous years, the DA increases were announced in September, with three months of arrears paid in October. This year’s delay, he argues, benefits the government financially, as it can invest the money during the waiting period.
In a letter to Finance Minister Nirmala Sitharaman, Yadav urged the government to release these allowances without delay, noting that the increase in DA/DR imposes an economic burden on the government, leading to a lag in the announcement. However, with pressure mounting, it is expected that the government will make the official announcement soon, bringing relief to millions of employees and pensioners.
Once approved, the new DA/DR rates are anticipated to provide much-needed financial relief and contribute to overall economic stability for central government workers and retirees across the country.
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