3% Increase in Dearness Allowance for Government Employees Approved Prior to Diwali
The central government has declared a 3% rise in dearness allowance (DA) and dearness relief (DR) for more than a crore employees and pensioners to alleviate the effects of inflation. This adjustment elevates the total DA from 50% to 53%, which will be applied in addition to the basic salary. The decision to implement this increase was reached during a cabinet meeting chaired by Prime Minister Narendra Modi this morning.
This new rate will be effective from July 1, 2024. The announcement, made just weeks before Diwali, provides significant relief to central government employees during the festive season.
In a government statement, it was noted, “This increase adheres to the accepted formula based on the recommendations of the 7th Central Pay Commission.
The government stated that the increase in DA and DR would benefit roughly 49.18 lakh central government employees and 64.89 lakh pensioners, but it would also cost the exchequer an extra Rs 9,448.35 crore annually.
Government workers receive DA, while pensioners receive DR as compensation for rising costs. This stipend, which is updated twice a year, is determined for industrial workers using the most recent consumer price index.
