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The Indian government has announced a 3% increase in Dearness Allowance (DA) for Central Government employees and pensioners, effective from July 1, 2024. This decision comes as a welcome gesture for over 1 crore employees and pensioners ahead of the Diwali festive season. The DA hike, taking the total DA to 53% of the basic salary, was approved by the Union Cabinet on October 16, 2024.
This move, in line with the recommendations of the 7th Central Pay Commission, is expected to cost the exchequer ₹9,448.35 crore annually. The increase will benefit approximately 49.18 lakh central government employees and 64.89 lakh pensioners. The last DA hike, amounting to 4 percentage points, was implemented on March 8, 2024, with effect from January 1, 2024, to offset rising prices.
In a similar move, the Chhattisgarh State Government also announced a 4% increase in DA for its state employees, taking the total DA to 50% of the basic salary. This decision, announced by Chief Minister Vishnu Deo Sai, reflects the government's commitment to ensuring the well-being of its workforce.
These DA hikes highlight the government's efforts to address the growing concerns of inflation and provide relief to its employees and pensioners. The timely announcements, particularly before Diwali, are expected to boost morale and spending power, contributing to a positive economic impact during the festive season.
Source: DA hiked by 3% for Central Government employees ahead of Diwali