Federal employees’ DA hike: Expected increase and new salary details!

The increase is expected to benefit about 12 million central government workers and pensioners under the 7th Pay Commission.

The central government is expected to announce an increase in the dearness allowance (DA) and dearness relief (DR) this week, potentially in advance of Holi.

A 2% increase is anticipated, which will help both employees and pensioners, according to many media reports. The boost is intended to give them financial stability and relief by improving their monthly income and assisting them in managing inflationary pressures.

It should be noted that government workers receive DA, whereas pensioners receive DR.

AT WHAT TIME WILL THE ANNOUNCEMENT OCCUR?

DA and DR are often raised by the central government twice a year, in March around Holi and again in October around Diwali.

While the October hike goes into effect in July, the March hike goes into effect in January.

WHAT WILL THE HIKE COST?

In light of this anticipated development, DA will rise from 53% to 55% of base pay. In October 2024, the government increased DA by 3%, making it 53% instead of 50%.

The DA increased from 46% to 50% in March 2024.

HOW IS DA DETERMINED BY THE GOVERNMENT?

Data from the All India Consumer Price Index for Industrial Workers (AICPI-IW) is used to calculate DA rates. Before making any changes, the government evaluates the data from the previous six months.

Prime Minister Narendra Modi will lead a Cabinet meeting to confirm the final decision on the DA hike. Pensioners and employees can anticipate updates shortly.

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