New Delhi, Oct 16: The Union Cabinet, chaired by Prime Minister Narendra Modi, approved a 3 per cent hike in Dearness Allowance (DA) and Dearness Relief (DR) for Central government employees and pensioners on Wednesday. This raises the DA and DR from 50 per cent to 53 per cent, with the increase retroactively effective from July 1.
The decision comes as a significant relief for nearly one crore Central government employees and pensioners ahead of Diwali, helping them cope with inflation. DA is adjusted biannually and is calculated based on the Consumer Price Index for Industrial Workers (CPI-IW), making it a key factor in determining government salaries and pensions.
In March 2024, the government had already increased DA by 4 per cent, effective from January, bringing it to 50 per cent of basic pay. Under the Seventh Pay Commission guidelines, several allowances, including House Rent Allowance (HRA), are revised automatically when DA crosses 50 per cent, which was implemented earlier this year.
While the DA and other allowances have been adjusted, there has been no corresponding increase in basic pay, as it was not recommended in the Seventh Pay Commission’s final report.
In related news, Chhattisgarh Chief Minister Vishnu Dev Sai also announced a 4 per cent DA hike for state government employees, effective from October 1, raising their DA to 50 per cent of basic pay, also in time for Diwali.
