Good News For Central Government Employees: 3% DA Hike Expected Ahead Of Diwali

Central government employees will likely receive a 3% hike in the dearness allowance as a Diwali bonus, reported an insider government source. If the approval is successful, the central government employees will be entitled to not a 42% but a 45% DA of the basic pay. The DA hike was scheduled to be effective from July 1, 2024. However, a delay in the DA/DR hike announcement has evoked concern among the Confederation of Central Government Employees and Workers. Multiple media sources are pointing towards the likelihood of an announcement in October after a final decision is made in the upcoming cabinet meeting. Despite all the speculation, an official announcement on the DA hike is still pending. Last month, the confederation’s general secretary, SB Yadav wrote to the Union Finance Minister, Nirmala Sitharaman about the “Discontent among employees and pensioners due to the delay in the announcement of DA/DR." Dearness Allowance is given to the employees which is calculated based on the All India Consumer Price Index and is included to adjust according to the fluctuations in the cost of living. DA is revised every 6 months. Dearness Relief is provided to retired central government employees or in other words, pensioners. Following the 3% DA hike, the basic salary of an entry-level government employee, which is Rs. 18,000 monthly, is expected to go up by a margin of Rs. 540 per month. Over 1 crore central government employees and pensioners are anticipated to draw advantage from this hike. Central government employees are also expected to receive arrears for July, August, and September.