7th Pay Commission: Cabinet has cleared a 3% hike in Dearness Allowance for central government employees ahead of Diwali. With this hike, the DA is now increased to 53% and will benefit around a crore staff and pensioners.
The Union Cabinet has cleared a 3 per cent hike in Dearness Allowance (DA) for central government employees ahead of Diwali, NDTV reported on October 16.
With this hike, the DA is now increased to 53 per cent. This change is expected to benefit over a crore central government employees and pensioners, with employees also likely to receive arrears.
Union Minister Ashwini Vaishnaw said, “Union Cabinet has approved a three per cent hike in DA for central government employees and Dearness Relief for pensioners. A total of ₹9,448 crore annually will be added to the paycheck of central government employees…”
What is Dearness Allowance?
Dearness Allowance (DA) is a percentage of employees’ basic salary designed to help mitigate the effects of inflation on their living expenses. This allowance is typically revised every six months to reflect fluctuations in the cost of living index.
DA is determined by the All India Consumer Price Index (AICPI), which monitors retail price fluctuations, and is updated twice annually. An increase in DA results in higher take-home pay for government employees, offering some relief as inflation continues to affect households.
Last year, the government announced an increase prior to the festive season. This year, the Himachal Pradesh government has surprised its employees with an early Diwali gift by implementing a 4 per cent DA hike just before Dussehra. This change is anticipated to benefit 180,000 employees and 170,000 pensioners in the state.
The Centre typically raises the dearness allowance (DA) and dearness relief for employees and pensioners twice a year, in January and July, with announcements generally occurring in early March and October.