The hike in dearness allowance (DA) which Central government employees have been waiting for since July 2024 has been delayed significantly. It is now reported that the DA increment of three per cent may be given with the October salary along with the arrears for the three months from July to September.
That means, more than one crore Central government employees and pensioners can look forward to receiving a good amount before Diwali.
Presently, the DA is 50 per cent, which will go up to 53 per cent if the three per cent hike is implemented, with effect from July 2024.
The DA hike takes place twice a year, in January and July, and these hikes are announced in March and September, respectively.
The dearness allowance plays a crucial role in helping employees and pensioners manage rising living costs by adjusting their pay based on inflationary trends. Calculated using the 12-month average of the All India Consumer Price Index (AICPI), the DA ensures that salaries remain aligned with economic realities. For instance, an employee with a basic salary of Rs 18,000, currently receiving Rs 9,000 as DA, could see their allowance rise by Rs 540 if a three per cent increase is approved.
Meanwhile, the Department of Expenditure, Ministry of Finance, has given its approval to an ad-hoc non-productivity linked bonus, for the year 2023-24. The same will be equivalent to 30 days’ pay and will be given to Central Para Military forces as well as those working in the Armed Forces and employees from the Union Territories.
About six lakh employees of the Rajasthan government will also enjoy ad-hoc bonuses on Diwali, as will the 2.75 lakh employees of grades C and D, working for public-sector undertakings or PSUs in Tamil Nadu.
