3-4% DA Hike Expected For Govt Employees Ahead Of Diwali

The central government is likely to announce a 3-4 per cent hike in Dearness Allowance (DA) for its employees ahead of Diwali, though the official confirmation is expected in October. Last year’s DA increase was announced during the first week of October, and this year's rise is anticipated to provide a financial boost for government employees and pensioners.

For entry-level employees with a basic salary of Rs 18,000, the increase would translate to an additional Rs 540-720 per month, according to reports. Employees earning around Rs 30,000 per month, with a basic pay of Rs 18,000, currently receive Rs 9,000 as DA. A 3 per cent increase would raise this to Rs 9,540, while a 4 per cent rise would result in Rs 9,720 per month.

Dearness Allowance (DA) for employees and Dearness Relief (DR) for pensioners are revised twice a year, in January and July, with over 10 million central government employees and pensioners currently benefiting from a DA rate of 50 per cent. Earlier this year, in March 2024, the government implemented a 4 per cent hike, pushing DA to 50 per cent of the basic salary. The calculation is based on the All India Consumer Price Index (AICPI), with the percentage determined by the 12-month average of the index.

As the country waits for the official announcement, the potential hike promises to bring some relief to government employees, adding to the festive cheer just ahead of Diwali.