DA Hike Announcement: The cabinet headed by Prime Minister Narendra Modi has approved a 2 percent increase in dearness allowance (DA) for central government employees.
The government has announced the increase in dearness allowance in the month of March. In such a situation, the arrears of two months will also be added together and given with the salary of March.
Who will benefit from the increase in DA?
Central government employees are given dearness allowance based on the current inflation rate and their basic salary, while pensioners get dearness relief. Their purpose is to reduce the burden of inflation on employees and pensioners. The government changes it twice a year based on the inflation rate.
The new rates of dearness allowance are applicable for the January to June half year and then for the July to December half year. The benefit of dearness allowance announced by the government is available only to government employees and those working in public sector undertakings i.e. government companies. People working in the private sector do not get the benefit.
2% increase in DA
This time the government has increased DA by 2%. After this increase, the dearness allowance of government employees has increased from 53% to 55%. This increase has been made on the basis of the data of July-December 2024 of All India Consumer Price Index (CPI).
How much can be the benefit if DA increases?
If the basic salary of an employee is Rs 18,000, then after a 2 percent increase in it, he will get Rs 360 more every month. In this way, there will be an additional income of Rs 4,320 in a year. On the other hand, if the basic pension of a pensioner is Rs 9,000, then after a 2 percent increase, he will get Rs 180 more every month. That is, there will be a benefit of Rs 2,160 in his pension in a year.
What is DA?
Dearness Allowance is an amount given to government employees to adjust their basic pay according to rising inflation. The basic pay is decided in the Pay Commission after every 10 years, but DA ensures a periodic increase in the salary of employees.
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