The Central Government Employees and Workers Confederation recently wrote a letter to Finance Minister Nirmala Sitharaman expressing concern over the delay in the announcement of DA/DR hike.
Dearness Allowance is usually reviewed twice a year. Dearness Allowance is increased from January and July.
The central government can announce an increase in Dearness Allowance and Dearness Relief for central employees and pensioners after the cabinet meeting on Wednesday i.e. today. More than one crore people are likely to keep an eye on this decision of the government. The central government can give a gift to employees and pensioners before Diwali.
The Central Government Employees and Workers Confederation recently wrote a letter to Finance Minister Nirmala Sitharaman expressing concern over the delay in the announcement of DA/DR hike. Dearness Allowance is usually reviewed twice a year. Dearness Allowance is increased from January and July. This increase is done according to inflation. However, official announcements are often made later. Currently DA is 50 percent.
DA can increase up to 3%
Central government employees are hoping that there can be a 3% increase in dearness allowance. At the same time, dearness relief for pensioners can also increase up to 3%. In such a situation, if there is a 3% increase in dearness allowance, then DA and DR for employees and pensioners will increase to 53%. However, no official statement has come on this yet.
Employees are eagerly waiting for this announcement, which may lead to a 3% hike in their DA. This change will be implemented in October, along with the arrears of the last three months from July to September. This is in line with last year’s pattern, when the salary hike was announced in early October.
What did the senior official say?
A senior official of the Confederation of Central Government Employees and Workers was quoted in the media report as saying that there will be a hike in DA in the next cabinet meeting. We are expecting an increase of at least 3%. The calculation of DA is closely linked to the All India Consumer Price Index (AICPI), which tracks retail inflation over the past 12 months. With global inflation pressures and rising costs, this decision is important for managing household budgets across the country.
The hike was announced in March
A 4% DA hike was announced in March 2024, which increased the DA from 46% to 50%. This hike also triggered revision of other allowances, including house rent allowance, in line with the 7th Pay Commission guidelines. The 7th Pay Commission, set up about a decade ago, had proposed automatic revision of basic pay when the DA crossed 50%. However, this proposal was not approved, due to which the unions plan to raise the demand again with the upcoming 8th Pay Commission.
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