The Indian government has recently announced a 4% increase in the Dearness Allowance (DA) for its employees, effective from January 1, 2024. This hike is part of the regular revision of DA and Dearness Relief (DR) based on the percentage increase in the All India Consumer Price Index for Industrial Workers. The DA hike is expected to benefit millions of government employees and pensioners across the country.
Key Highlights
- 4% DA Hike: The government has increased the DA by 4%, which will be effective from January 1, 2024.
- Additional Benefits: The hike will also include automatic increases in children’s education allowance, hostel subsidy, retirement gratuity, and gratitude, whenever DA reaches 50% of the basic salary.
- Retirement Gratuity: The retirement gratuity for central government employees will increase by 25% to ₹25 lakhs.
- DA Calculation: The DA is calculated based on the percentage increase in the All India Consumer Price Index for Industrial Workers, with revisions taking place in January and September every year.
- 7th Pay Commission: The DA hike is part of the regular revision of DA and DR, which is based on the recommendations of the 7th Pay Commission.
Impact on Employees
The DA hike will have a significant impact on the salaries of government employees. For example, an employee with a basic salary of ₹60,000 will receive an additional ₹2,400 per month and ₹28,800 per year. Similarly, an employee with a basic salary of ₹1,00,000 will receive an additional ₹4,000 per month and ₹48,000 per year.
Also Check
- Line of Control: Army Chief General Upendra Dwivedi reviewed the security situation on the Line of Control
- LK Advani Hospitalised: LK Advani’s health deteriorated again, admitted to Apollo Hospital in Delhi
- Hathras stampede case: Judicial inquiry commission formed, Brijesh Kumar Srivastava becomes chairman; Know who else is included
- Another Chaotic Bunch Sprint Decides Stage 5 of the Tour de France
- Paige Spiranac Secures Sponsorship for Hot Dog Eating Challenge
State-Wise DA Hike
Some states have also announced their own DA hikes for government employees. For instance, the West Bengal government has announced a 4% increase in DA for its employees from April 1, 2024.
Bank Employees’ DA Hike
Public sector bank employees have also received a DA hike of 15.97% for the months of May, June, and July 2024. This hike is part of the regular revision of DA for bank employees and is based on the All India Consumer Price Index for Industrial Workers.
Downloadable Resources
For more detailed information on the DA hike and its impact on government employees, you can download the official notification from the Department of Personnel and Training (DoPT) or the Department of Pension and Pensioners’ Welfare.