DA Hike 2024: Central government employees are likely to get a big gift this Diwali. The government may soon announce a 3% hike in dearness allowance (DA), which may increase the salary of government employees.
This decision will be finalized in the upcoming cabinet meeting, and it can be announced around Diwali, i.e. around 31 October 2024. The increase in dearness allowance will provide relief not only to government employees but also to pensioners.
How is DA hike calculated?
Dearness Allowance is calculated on the basis of All India Consumer Price Index (AICPI). This index monitors retail price movements and is revised twice a year. The purpose of increasing DA on the basis of this index is to protect government employees from the effects of inflation. In view of the continuous increase in retail prices and the difficulties faced by common people in making a living, this announcement is considered very important.
Current DA rate and possible hike
Currently, central government employees are getting 50% dearness allowance. If the government implements this scheme, the new rate of DA can increase to 53% from July 1, 2024. This will mean that government employees will get more salary than before. Also, the arrears of the months of July, August and September will also be given to the employees, due to which they are likely to get a large lump sum amount.
More than one crore employees will get benefit
More than 1 crore central government employees and pensioners will benefit from the 3% increase in dearness allowance. This step is being taken at a time when inflation and price rise are increasing the pressure on the livelihood of common citizens. The increase in DA will provide some relief to the employees and they will be in a better position financially during the festive season.
When was the last time DA was increased
Last year also, the central government had announced a hike in DA before the festive season, which benefited employees and pensioners before Diwali. At that time also, the government had taken this step keeping in mind inflation. There is a possibility of increase in DA by the government every year before Diwali so that employees can get better financial support during festivals.
State governments are also giving relief to the employees
Before this scheme of the central government, the Himachal Pradesh government had also announced a 4% DA hike for its employees and pensioners. This announcement was made just before Dussehra, which is benefiting about 1.80 lakh employees and 1.70 lakh pensioners of Himachal Pradesh. Such announcements for employees are made by the state governments keeping in mind the financial health of the state and the general public.
Impact of increasing DA on employees
The increase in DA improves the purchasing power of the employees. With the increasing level of inflation, the needs of the common man are also increasing. In such a situation, this increase will act as a relief for the employees. Along with this, by getting the outstanding amount, they will get additional money during the festivals, so that they can celebrate the festival in a better way.
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