Central govt employees, pensioners get 3% DA hike ahead of Diwali

In view of the festive season, the Centre has decided to raise the Dearness Allowance (DA) of central government employees and Dearness Relief (DR) of pensioners by three per cent.

According to the Business Today, the central Cabinet approved the hike on Wednesday (October 16).

DA, DR hiked to 53%

The hike takes the total DA of current employees and pensioners from the earlier 50 per cent to 53 per cent. The new allowance is applicable from July 1, 2024.

Also read: RBI breaks away from global rate cuts, balances inflation control with growth

The raise in DA and DR will benefit over 1 crore central government employees and pensioners who will not only receive their October salaries with the added allowance, but also three months’ worth of arrears.

Relief for 1 crore employees

The tweaks in DA and DR comes as a relief for employees and pensioners as it helps them cope with rising inflation. The DA which is set keeping in mind the Consumer Price Index (CPI), helps employees handle expenses at the time of rising living expenses.

The central government makes changes to the DA and DR twice a year with the changes effective from January and July. The announcements are usually made in March and September. While the allowance was expected to be raised before the Haryana elections this year, it had been delayed.

The Confederation of Central Government Employees and Workers had also written to Finance Minister Nirmala Sitharaman earlier this month, urging her to expedite the process.