DA Hike Coming Soon? 4% Dearness Allowance Hike For Central Govt Employees Likely In Sept; Check Increase In Salary

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New Delhi: The Centre is expected to increase the dearness allowance (DA) by 4 percent, as per various media reports. If it is approved it will mark the second increase in both dearness allowance and dearness relief (DR) this year. The announcement is likely to come in September which would raise the current DA from 50 percent to 54 percent.

While the DA is set to increase the Centre may still not release the 18-month arrears that have been pending since the COVID Pandemic. So far, Central Government employees have not received these arrears and there has been no official statement from the government on the matter. Earlier, it was being speculated that the DA hike would come into effect from July but that did not happen.

Recent DA Changes

The Dearness Allowance (DA) for central government employees has recently been raised by 4 percent, moving from 46 percent to 50 percent, effective from January 1, 2024. Similarly, the Dearness Relief (DR) for central government pensioners has also been increased by 4 percent, bringing it to 50 percent.

Check how is DA calculated?

Dearness Allowance is calculated using the Consumer Price Index for Industrial Workers (CPI-IW) data, which is released monthly by the Labour Bureau.

What Will Be the Salary Increase?

With the 4 percent increase in Dearness Allowance (DA), Central government employees are set to receive a significant boost in their salaries, raising the total DA to 54 percent. For example, if an employee's basic salary is Rs 40,000, the hike will add Rs 1,600 to their monthly pay, totaling an extra Rs 19,200 annually.

Employees with a salary of Rs 60,000 will see a monthly rise of Rs 2,400. However, the government has yet to officially announce the date for this DA hike, though reports suggest it could be in the first week of September.

What is Dearness Allowance?

Dearness Allowance (DA) is a benefit provided by the Central government to its employees and pensioners to help them cope with rising prices and the effects of inflation. It is designed to protect government employees from the impact of inflation by providing additional financial support.