New Delhi, October 16, 2024 : The Union Cabinet has cleared a 3% hike in DA on Wednesday, benefitting 49.18 lakh central government employees and 64.89 lakh pensioners, ahead of the Diwali festive season this year.
The raise takes the DA now to 53% of the basic salary with effect from July 1, 2024.
During a press briefing after the Cabinet meeting on Wednesday, Union Minister Ashwini Vaishnaw said that the Dearness Allowance (DA) hike was effective from July 1, 2024.
The Dearness Relief for pensioners has also been revised by 3 per cent, Vaishnaw said.
“The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.07.2024 representing an increase of three percent (3 per cent) over the existing rate of 50 per cent of the Basic Pay/Pension, to compensate against price rise,” as per a government release.
The combined impact on the exchequer on account of both DA and DR would be Rs .9,448.35 crore per annum, it added.
As per the release, this increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.
The Central and state governments generally announce twice-a-year adjustments in inflation-linked Dearness Allowance (DA)/Dearness Relief (DR). The first is given from January to June, while the second comes from July to December.
This hike is effective from July 2024, the employees and pensioners will get arrears for July, August and September.
Let’s assume that those gets a basic salary of Rs Rs 46,200. Earlier at 50%, his dearness allowances was Rs 23,100. With dearness allowances hiked to 53%, his dearness allowance will rise to Rs 24,486. So he will get Rs 1,386 (Rs 24,486-Rs 23,100) more in DA from October. As the DA hike is applicable from July 1, 2024, he will get arrears for the last three months.
Similar, a central government pensioner gets a basic pension of Rs 50,400 per month. At 50% DR, the pensioner used to get Rs 25,200. His DR is now raised to 53%, so he will get Rs 26,712 monthly as dearness relief. So, his pension will rise by Rs 1,512 per month.
