Government Approves 3% DA Hike Benefiting Millions

The Union Cabinet has sanctioned a 3% increment in Dearness Allowance for central government employees and pensioners. This revision, effective from July 1, 2024, stems from economic strategies by the 7th Central Pay Commission and impacts approximately 49.18 lakh employees and 64.89 lakh pensioners.

In a significant move, the Union Cabinet approved a 3% increase in Dearness Allowance (DA) for government employees, effective July 1, 2024. Announced by Union Minister Ashwini Vaishnaw at a press briefing, the hike also extends to Dearness Relief (DR) for pensioners, marking a substantial financial decision for public sector workers.

The adjustment will increase government spending by Rs. 9,448.35 crore annually, a necessary measure to address the rising cost of living as per the 7th Central Pay Commission's recommendations. This adjustment benefits approximately 49.18 lakh central government employees and 64.89 lakh pensioners, providing much-needed inflation relief.

The DA and DR, revised twice yearly, aim to safeguard employees' basic pay and pensions from inflationary pressures, indicated by changes in the All India Consumer Price Index for Industrial Workers (AICPI-IW). With the hike effective from July 2024, employees can expect arrears for the months of July, August, and September.

(With inputs from agencies.)