The central government was expected to announce a hike in DA and dearness relief (DR) for government employees.
Typically, the central government revises the DA twice a year, in January and July, with official announcements usually made later. DA is applicable to serving employees, pensioners receive DR.
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The decision, announced by Information and Broadcasting Minister, raises DA and DR from 50 per cent to 53 per cent, effective from July 1, 2024.The DA hike is aimed at mitigating the impact of inflation and will benefit around 1.15 crore central government employees and pensioners.
DA, revised biannually in January and July, is calculated based on the Consumer Price Index for Industrial Workers (CPI-IW), which reflects inflation trends. Pensioners receive dearness relief (DR) under similar guidelines.
This increase follows the 4 per cent DA hike announced in March 2024, which had raised DA to 50 per cent of basic pay.
The Seventh Pay Commission mandates that certain allowances, including house rent allowance (HRA), are revised once DA reaches 50 per cent, which occurred earlier this year.
In a separate announcement, Chhattisgarh Chief Minister Vishnu Dev Sai declared a 4 per cent DA increase for state government employees, bringing their DA to 50 per cent of basic salary, effective from October 1, 2024.