New Delhi: Central government employees are in for a pleasant surprise this month, as the government is set to announce a 3% increase in the Dearness Allowance (DA). This hike will provide much-needed relief to employees by raising their salaries. Every year, government employees eagerly await a DA hike between July and September, as it benefits all employees, from lower-level staff to senior officers. Under the 7th Pay Commission, the government increases employees’ salaries and DA twice a year.
3% DA Hike for Central Government Employees
According to media reports, based on the All India Consumer Price Index for Industrial Workers (AICPI-IW) data from January to June 2024, the government has decided to increase DA by 3% starting from July 2024. This decision follows a 1.5-point rise in the AICPI index in June. The DA is expected to increase to 53% after this hike.
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The announcement will likely be made at the Cabinet meeting on September 25. For example, an employee earning a monthly salary of ₹50,000 will see a ₹1,500 increase in their salary after the DA hike.
Earlier this year, in January 2024, the central government had increased the DA by 4%, bringing the allowance to 50%. This provided significant financial relief to government employees. Typically, DA/DR hikes are effective from January 1 and July 1 each year, though the announcements are made later. Employees and pensioners will also receive arrears for the previous months. Last year, in 2023, the DA hike was announced on October 18. This increase will benefit millions of central government employees and pensioners.
