Diwali Bonus Alert: Central Govt Employees May Receive 3% DA Hike, Claim Reports

New Delhi: Though an official confirmation is awaited, several media reports suggested that Central government employees can expect a 3% increase in the dearness allowance (DA) that may be announced before Diwali. If the reports come true, this hike would benefit over 1 crore central government employees and pensioners, enabling them to receive their October salaries with the updated DA hike, along with three months' arrears.   

The central government typically adjusts the DA twice a year, effective from January and July, with announcements traditionally occurring in March and September. The January DA increase is usually disclosed around the time of Holi in March, while the July adjustment is typically made close to Diwali, which this year falls on October 31.

However, the announcement for this year’s July DA hike has been delayed longer than usual. Initially anticipated before the Haryana elections held on October 5, the announcement did not occur as expected. Reports now suggest that the hike may be revealed just days before the Diwali celebrations.

The dearness allowance plays a vital role in government employees' compensation, aimed at managing the rising cost of living driven by inflation. The DA is calculated based on the All India Consumer Price Index (AICPI), which monitors changes in retail prices.

Earlier this month, the Confederation of Central Government Employees and Workers expressed their concerns about the delay in announcing the DA hike in a letter to Finance Minister Nirmala Sitharaman .

Currently, the DA stands at 50%. Should the government proceed with the 3% increase, it will rise to 53% effective from July 1, 2024. This adjustment would provide substantial financial relief for central government employees and enhance their overall compensation.

As Diwali approaches, the anticipated DA hike brings renewed hope for government employees and pensioners eagerly awaiting this crucial announcement.