DA Hike: In a move that brings cheer to central government employees and pensioners, the Union Cabinet, led by Prime Minister Narendra Modi, has approved a 3% increase in Dearness Allowance (DA). This hike will take effect from July 1, 2024, offering a timely Diwali gift to those serving the nation. The increase is set to help counter the rising costs of living, ensuring that government employees can better manage their finances amid inflation.
Details of the DA Hike
The recent announcement includes a 3% increase in Dearness Allowance for approximately 49.18 lakh central government employees, alongside a matching increase in Dearness Relief (DR) for about 64.89 lakh pensioners. According to a government release, the total financial impact on the government’s budget due to this DA hike will amount to ₹9,448.35 crore annually.
Financial Relief for Pensioners
In addition to the DA hike for government employees, pensioners will also benefit from the revised Dearness Relief, which has been increased by 3%. This adjustment is crucial for retirees who rely on their pensions to meet daily expenses, particularly during festive seasons like Diwali.
Timing of the Increase
The DA and DR adjustments occur biannually, on January 1 and July 1. These adjustments are calculated using the All India Consumer Price Index for Industrial Workers (AICPI-IW), ensuring that the increases align with inflation trends. Employees will receive arrears for the months of July, August, and September along with their updated payments, making this hike especially impactful.
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