Updated February 27th, 2024 at 13:07 IST

Central government employees set to receive 4% hike in Dearness Allowance

The forthcoming hike follows the previous adjustment in October 2023, where the DA was escalated by 4% to reach 46%.

Reported by: Business Desk
DA increase expected | Image:Shutterstock

DA increase expected: Central government employees are anticipated to witness a 4 per cent increase in Dearness Allowance (DA) in March as per the 7th Pay Commission, raising the total DA to 50 per cent. The decision on the DA hike is grounded on the All-India CPI-IW data, with revisions typically occurring twice annually. The forthcoming hike follows the previous adjustment in October 2023, where the DA was escalated by 4 per cent to reach 46 per cent.

DA, a crucial component of government employees' salaries, is distinguished from Dearness Relief (DR), which is provided to pensioners. The announcement regarding the DA hike is generally disclosed in March.

Upon implementation of the anticipated 4 per cent DA hike, both the dearness allowance and dearness relief are expected to ascend to 50 per cent, according to reports. This augmentation comes against the backdrop of the 12-month average of the Consumer Price Index for Industrial Workers (CPI-IW) standing at 392.83. Based on this data, the DA is calculated to amount to 50.26 per cent of the basic pay.

Additionally, recent developments in various states indicate a broader trend of DA increases for government employees. For instance, the Yogi Adityanath-led government sanctioned a 10 per cent hike in DA for regular roadways employees, impacting approximately 12,000 workers and bringing the DA to 38 per cent. Similarly, West Bengal announced a 4 per cent hike in DA for state government employees, while Punjab Chief Minister Bhagwant Mann declared a 4 per cent rise in DA for government employees and pensioners in December 2023, effectively increasing the DA from 34 per cent to 38 per cent.

These successive hikes in DA across different states underscore the broader effort to address the economic concerns of government employees amidst the prevailing inflationary pressures.

Published February 25th, 2024 at 20:05 IST