4% Dearness Allowance Hike for Central Govt Employees Expected in September
4% Dearness Allowance Hike for Central Govt Employees Expected in September
New Delhi: The Centre is anticipated to announce a 4% increase in the dearness allowance (DA) for central government employees in September. This would raise the DA from 50% to 54%. If approved, this will be the second hike in DA and dearness relief (DR) this year.
Currently, there are no updates regarding the release of the 18-month DA arrears pending since the COVID-19 pandemic. Previously, it was speculated that the DA increase would be effective from July, but this has not materialized.
Earlier this year, the DA was raised by 4%, bringing it from 46% to 50%, effective january 1, 2024. Similarly, the DR for pensioners was also increased by 4% to 50%.
How is DA Calculated? DA is determined based on the Consumer Price Index for Industrial workers (CPI-IW), which is published monthly by the Labour Bureau.
Impact on Salary With the expected 4% DA increase, government employees will see a notable rise in their salaries. For instance, an employee with a basic salary of Rs 40,000 will see an additional Rs 1,600 per month, amounting to an extra Rs 19,200 annually. Employees earning Rs 60,000 will experience a monthly increase of Rs 2,400. The official announcement of this DA hike is yet to be made, but it is expected to be in the first week of September.
What is Dearness Allowance? Dearness Allowance (DA) is a financial benefit provided by the central government to its employees and pensioners to mitigate the effects of inflation and rising living costs. It is aimed at protecting employees from the adverse impacts of price increases.