7th Pay Commission: 3% Hike In Dearness Allowance For Government Employees Cleared Ahead Of Diwali

New Delhi: In a major relief to central government employees and pensioners, the Centre on Wednesday announced a 3% hike in Dearness Allowance (DA), taking the total to 45% from the existing 38%. The decision, approved during a cabinet meeting this morning, comes just weeks ahead of Diwali, offering timely support during the festive season.

The increase in DA will be effective from July 1, 2024, and benefit over one crore government employees and pensioners. Dearness Allowance is provided to compensate for the rising cost of living due to inflation. It is revised twice a year and is based on the latest consumer price index for industrial workers.

Dearness Allowance is provided to compensate for the rising cost of living due to inflation. It is revised twice a year and is based on the latest consumer price index for industrial workers. This move is expected to bring much-needed financial support to employees and pensioners as prices continue to surge, particularly during the festive period.

Earlier in the day, Chhattisgarh Chief Minister Vishnu Deo Sai announced that the Dearness Allowance (DA) of state government employees will be increased by 4%, taking it to 50% of the basic salary. The decision will benefit nearly 3.9 lakh state government employees and the hike will be effective from October 1 this year, officials said.

As the Diwali festival is approaching, the government has decided to increase DA by 4 per cent, bringing it at par with the central government, Sai told reporters here. Earlier in March this year, the Sai government hiked the DA by 4 cent, bringing it to 46 per cent of the basic pay.