The Great news is that the Central government has announced gifts for above 1 crore central employees and pensioners as DA hike announcement is imminent before the festive season begins. As per the close sources, the awaited announcement of DA increase is expected to take place on March 12, 2024, just before Holi, which is celebrated on March 14. This move will be welcomed by employees who have been waiting for this revision since the approval of the proposal from the 8th Pay Commission.
It is expected that the next cabinet meeting of the central government will be held on March 12, and in that meeting, the final words on the DA and Dearness Relief (DR) hike will be said. Over 12 million employees and pensioners will get the benefit of this revision.
What is Dearness Allowance (DA)?
Dearness Allowance is an additional cost-of-living adjustment allowance for government employees or pensioners affected by inflation. This allowance is revised twice a year – effective from January 1 and July 1 – and is announced at any time, but the hike is based on AICPI data.
By How Much Will DA Increase Now?
The last increase happened in July 2024 when DA jumped by 3%, from 50% to 53%. Based on the AICPI data for December 2024, 2% will be added to that DA figure, bringing it to 55%. However, as said above, the final decision lies in the cabinet meeting presided over by Prime Minister Narendra Modi.
Here are the Impacts on Salaries
A 2% DA hike will make a direct impact on the salaries of central employees. Here’s how:
- For employees earning a basic salary of Rs 18,000, the DA will go up by Rs 360, taking the total DA from Rs 9,540 to Rs 9,900.
- If the hike is 3%, the DA will rise by Rs 540, resulting in a total DA of Rs 10,080.
This will benefit the employee in terms of take-home and financial relief due to high inflation.