Diwali Bonanza: Union Cabinet approves 3 percent hike in DA of central govt employees

Prameyanews English

Published By : Pradeep Subudhi | October 16, 2024 4:33 PM

DA

New Delhi, October 16: The Union Cabinet has today approved a 3 percent hike in Dearness Allowance (DA) for central government employees.

Addressing a press conference after the Cabinet meeting on Wednesday, Union Minister Ashwini Vaishnaw said that the DA hike was effective from July 1, 2024.

The Dearness Relief for pensioners has also been revised by 3 percent, Vaishnaw said.

"The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.07.2024 representing an increase of three percent (3 percent) over the existing rate of 50 percent of the Basic Pay/Pension, to compensate against price rise," as per a government release.

The combined impact on the exchequer on account of both DA and DR would be Rs .9,448.35 crore per annum, it added.

This increase is by the accepted formula, which is based on the recommendations of the 7th Central Pay Commission. This will benefit about 49.18 lakh central government employees and 64.89 lakh pensioners.

The Dearness Allowance/Dearness Relief is paid to central government employees/pensioners to adjust the cost of living and to protect their basic pay/pension from erosion in the real values.

These are revised twice a year from 1st January and  1st July based on the increase in the 12 monthly average of All India Consumer Price Index for Industrial Workers (AICPI-IW) published by the Labour Bureau.

Since the hike is effective from July 2024, the employees will get arrears for July, August and September

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