Central government employees may soon see an increase in their dearness allowance (DA). The Centre is reportedly expected to announce a hike of three to four per cent in September, effective from 1 July, 2024.
While a three per cent increase is certain, the possibility of a four per cent hike depends on inflation conditions.
Currently, the DA stands at 50 per cent of the basic pay, and there are ongoing discussions about merging DA with the basic pay as per the 7th Pay Commission.
However, sources indicate that this merger will not occur if the DA exceeds 50 per cent. Instead, allowances, including House Rent Allowance (HRA), may be increased when the DA crosses this threshold, a situation that has already been reached. Notably, during the 4th Pay Commission, the DA had surged to as high as 170 per cent.
In the previous adjustment in March 2024, the government had raised the DA by four per cent, bringing it to 50 per cent of the basic pay.
Concurrently, dearness relief (DR) for pensioners was also increased by four per cent.
The DA and DR are typically revised twice a year, effective from January and July. These are determined by the percentage increase in the 12-month average of the All-India Consumer Price Index for Industrial Workers (CPI-IW). Although the allowances are revised effective 1 January and 1 July each year, announcements are typically made in March and September/October. In 2006, the formula to calculate DA and DR for Central government employees and pensioners was revised.
2 Comments
2004-14 me mahangai ab hai utni nahi thi fir bhi 6-9 DA six monthly badhta tha. BJP sarkar ne AICPI calculation formula me non food component badhaya aur food component kam kiya hai jab household expenses me 70 percent food expenses hai
Thank you for your immediate response to my enquiry. As Google is ever dependant for Senior Citizen like me I am ever thankful to Google