New Delhi . Central government employees may soon get some good news. There is news that the government may announce a 3% increase in Dearness Allowance (DA). A final decision on this will be taken in the next cabinet meeting and then an official announcement is expected around the Diwali celebrations on October 31. At the same time, according to different media reports, the central government can make an announcement in mid-October. However, no official details regarding DA increase have been revealed yet. At present the Dearness Allowance (DA) is 50 percent. However, now if the government increases DA by 3% then the new rate may increase to 53 percent from July 1, 2024. The change is expected to benefit over one crore central government employees and pensioners, with employees also receiving arrears for July, August and September. Last year, the government had announced a hike in DA before the festive season. This year, the Himachal Pradesh government has announced a 4 percent DA hike just before Dussehra. The change is expected to benefit 180,000 employees and 170,000 pensioners in the state. The Center usually increases dearness allowance (DA) and dearness relief for employees and pensioners twice a year in January and July, with announcements usually coming in March and early October.
Dearness Allowance (DA) is 1% of the basic salary of the employees. It is designed to help reduce the impact of inflation on their living expenses. This allowance is usually revised every six months to reflect fluctuations in the cost of living. Dearness Allowance (DA) is decided by the All India Consumer Price Index (AICPI), which monitors retail price fluctuations and is updated twice annually. The increase in DA results in higher take-home pay for government employees, providing some relief as inflation continues to hit households.