The central government has announced a 4 per cent increase in the Dearness Allowance (DA) for government employees, bringing it up to 50 per cent. Prime Minister Narendra Modi chaired the union cabinet meeting where this decision was approved. The hike, effective from January 1, 2024, aims to offset the impact of rising prices on the employees’ finances.
According to the government release, this increment raises the existing rate of DA, which was at 46 per cent of the Basic Pay/Pension. It’s part of the government’s efforts to alleviate the financial strain caused by inflation.
#Cabinet has approved the decision to hike dearness allowance for central government employees and pensioners by 4 %.
▪️Now the #DA will reach to 50%.
▪️House Rent allowance will be increased. Now gratuity limit has reached to 25 lakh rupees – Union Minister @PiyushGoyal… pic.twitter.com/jRcmR88W5y
— All India Radio News (@airnewsalerts) March 7, 2024
The decision will have a combined financial impact of Rs. 12,868.72 crore per year, covering both Dearness Allowance and Dearness Relief for pensioners. Approximately 49.18 lakh central government employees and 67.95 lakh pensioners are expected to benefit from this move.
The increase follows the established formula based on the recommendations of the 7th Central Pay Commission, ensuring fairness and consistency in the adjustments made to the employees’ compensation.
This announcement is expected to bring relief to a significant number of government employees and pensioners who have been grappling with the economic challenges posed by the current inflationary trends.
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