7th Pay Commission: Central government employees may get great news this month. Central government employees are likely to get a 4% increase in dearness allowance. Government increases both Dearness Allowance (DA) and Dearness Relief (DR)
7th Pay Commission: Central government employees may get great news this month. Central government employees are likely to get a 4% increase in dearness allowance. The government increases both Dearness Allowance (DA) and Dearness Relief (DR). Dearness allowance is given to government employees, while dearness relief is given to pensioners. DA is generally revised twice a year – in January and July. The announcement regarding DA hike is expected to be made before Holi in March 2024. If the government increases DA before Holi, then 2 months’ D arrears will also be included in the salary received at the end of March.
How is DA increase calculated?
The increase in dearness allowance for employees and pensioners is calculated on the basis of the latest Consumer Price Index for Industrial Labor (CPI-IW) released every month by the Labor Bureau. The last time DA was revised was in October 2023, when DA was increased by 4 percent to 46 percent. With 4% DA increase, the total DA will increase to 50%.
You will get 2 months DA arrears
The government may increase DA before Holi in March. If the government does this, two months’ DA arrears will also come in the March salary. The four percent increase in DA will be considered effective from January 1. DA arrears of two months of January and February will also be given in the salary of March.
About 1 crore employees and pensioners will benefit
The decision of the Central Government benefited 48.67 lakh Central Government employees and 67.95 lakh pensioners. Earlier, Diwali bonus for Group C and non-gazetted Group B level officers including paramilitary forces was approved by the government. DA of central government employees is based on the inflation rate of the country. If inflation rate is high, there is a possibility of further increase in DA.
How much total increase in DA is expected?
After 4 percent DA increase in the coming month, the total dearness allowance and dearness relief will increase to 50 percent. The 12-month average of the Consumer Price Index for Industrial Workers (CPI-IW) stood at 392.83. According to this CPI-IW data, DA is coming to 50.26 percent of the basic salary.
