Centre Announces DA Hike For Government Employees Ahead Of Diwali
The Union Cabinet, chaired by Prime Minister Narendra Modi, has announced a 3 per cent increase in Dearness Allowance (DA) for central government employees ahead of Diwali. The government has approved Rs 10,016 crore for the increase. Following the decision at the Cabinet meeting on October 28, the DA rate will rise from 60 per cent to 63 per cent of basic pay. The move is expected to provide financial relief to employees amid rising living costs, following weeks of anticipation over the long-awaited announcement.
What Is DA?
Dearness Allowance is an additional payment made to government employees to help them cope with rising prices. It is calculated as a percentage of basic salary and revised periodically to account for inflation.
The allowance is paid over and above an employee’s basic pay, helping protect their purchasing power as the cost of living increases.
How Much Will Salaries Rise?
The increase means employees will receive additional money each month, depending on their basic salary.
For instance, an employee with a basic salary of Rs 25,000 will receive DA worth Rs 15,750 at the revised rate of 63 per cent. This brings their basic salary and DA combined to Rs 40,750, excluding other allowances and deductions.
Under the previous 60 per cent rate, the employee would have received Rs 15,000 as DA. The latest increase therefore adds Rs 750 to their monthly earnings.
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DA Revised Twice A Year
The Centre typically revises DA twice a year, with changes applicable from January and July. Decisions on the January revision are generally announced around March or April, while the July revision is usually announced around September or October.
The increase is determined using an established formula linked to inflation, meaning the percentage rise can vary with each revision.
Previous Hikes
The Modi government has announced several DA increases since coming to power in 2014. The allowance was raised by 7 percentage points in 2014, followed by increases of 6 percentage points in each of the next three years, according to the figures provided.
During the COVID-19 pandemic, the Centre froze DA increases for a period. The withheld instalments were subsequently released.
The latest announcement comes ahead of Diwali, offering additional financial support to central government employees as they prepare for the festive season.
This content is published by ABP Live - Business and has not been created or edited by Hello Headlines. View original
