Dearness Allowance (DA) has been hiked for certain central government employees taking salaries as per the 5th, 6th, and 7th pay commissions, the Department of Public Enterprises of the Finance Ministry announced through an office memorandum dated November 7, 2024, The Economic Times reported.
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How much DA increased?
The DA is now 246% for the basic pay of the 6th Central Pay Commission, compared to 239% earlier, with the newly revised rate being effective from July 1, 2024.
Meanwhile, the DA is 455% for the 5th Pay Commission, compared to 443% earlier and is applicable from July 1, 2024.
The DA has been increased from 50% to 53% for the 7th Central Pay Commission and will apply from July 1, 2024.
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This means that the government employees will also receive the arrears from July 1, as applicable.
DA is always calculated based on the employee’s basic pay. So, for example, if a central government employee’s basic pay is ₹43,000 per monthas per the 6th pay commission, the new DA would be ₹1,05,780 as the rate is 246%, compared to ₹1,02,770 earlier when the DA used to be 239%.
What is dearness allowance?
Dearness Allowance (DA) is a part of salary of the government employees and pensioners, which is to adjust the total salary for inflation, so that the rising costs of living can be accommodated for.
The government revises the DA two times a year. Once in January and once in July. It varies based on the pay commission and also on whether they work in the urban, semi-urban, or rural sector.
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