New Delhi: The central government is expected to announce a Dearness Allowance ( DA) hike in October, reports stated. There is no official information on the DA hike from the government side. The reports said that the government is expected to announce a 3-4 per cent increase in DA ahead of Diwali 2024.
The DA hike will come as a huge sigh of monetary relief for the central government employees. People earning a salary of Rs 18,000, would get an additional Rs 540-720 per month, Depending upon the percentage hike.
Dearness Allowance (DA) is provided to government employees, while pensioners are given Dearness Relief (DR). The government revises these allowances twice yearly, in January and July.
Prime Minister Narendra Modi-led Union Cabinet approved to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect from January 1, 2024. The government approved a hike of 4 per cent over the existing rate of 46 per cent of the basic pay/pension, to compensate against price rise.
The increase in both Dearness Allowance and Dearness Relief impacted the exchequer of Rs12,868.72 crore per annum. The raise benefited around 49.18 lakh central government employees and 67.95 lakh pensioners.
The Ministry of Finance said the hike was in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.
Taking into account the inflation figures and the cost of living, Dearness Allowance is provided. It is a percentage of the basic salary paid to central government employees. The government revises the DA periodically to account for changes in the cost of living index.
The government on September 26, 2024 announced to increase Minimum Wage Rates for workers. “The Central Government has announced an increase in minimum wage rates by revising the Variable Dearness Allowance (VDA). This adjustment is aimed at helping workers cope with the rising cost of living. The new wage rates will take effect from October 1, 2024,” Ministry of Labour & Employment stated.
The central government employees likely to get 3-4 per cent Dearness Allowance hike before Diwali 2024. However, there is no official announcement from the government. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
