Table of Contents
New Delhi: Central government employees are eagerly waiting for an official announcement regarding a hike in Dearness Allowance (DA), which is expected to increase their salaries. Although the announcement is anticipated in October, there has been no official confirmation from the government yet. Last year, the DA hike was declared in the first week of October. Let’s address the big elephant in the room i.e. how much pay rise is expected.
How Much Pay Rise Is Expected?
According to reports, the government is likely to announce a 3-4 per cent DA hike just before Diwali. Once implemented, the salary of entry-level central government employees with a basic pay of Rs 18,000 per month could rise by Rs 540 to Rs 720 per month, with the hike being retroactive from July 1, 2024.
For employees earning Rs 30,000 per month, the current DA, which is 50 per cent of their basic pay of Rs 18,000, amounts to Rs 9,000. A 3 per cent increase would raise the DA to Rs 9,540, while a 4 per cent hike would take it to Rs 9,720 per month.
When Was DA Hike Announced Last Time?
The last DA revision took place in March 2024, when the government increased the allowance by 4 per cent, bringing it to 50 per cent of the basic pay. Pensioners also received a 4 per cent hike in their Dearness Relief.
Related News |
Silver Prices Hit Record Highs: Will They Soon Exceed Rs 1 Lakh? Key Factors Driving the Surge
DA And DR To Central Government Employees
Dearness Allowance is provided to government employees to help manage the impact of inflation, while Dearness Relief (DR) is extended to pensioners. Both DA and DR are revised twice a year, in January and July. Over one crore central government employees and pensioners currently receive a 50 per cent DA.
What Will Be The DA Increase Percentage?
The percentage increase in DA and DR is based on the 12-month average of the All India Consumer Price Index (AICPI). Although the allowances are revised on January 1 and July 1 each year, announcements typically occur in March and September.
Related News |
Key Income Tax Changes From October 1: What You Need to Know