- By Aditya Pratap Singh
- Wed, 16 Oct 2024 10:49 AM (IST)
- Source:JND
7th Pay Commission: The central government gave festive gifts to employees this Diwali as the union cabinet approved a 3% hike in dearness allowance (DA), which will further increase the monthly salary of central government employees. According to media reports, the hike in dearness allowance has been finalised in a cabinet meeting. Pensioners will also be eligible for the new DA rates
The dearness allowance is calculated using the All India Consumer Price Index (AICPI), which tracks retail price movements and is updated twice a year. The dearness allowance has been paid to employees given the continuous rise in retail prices and the difficulties faced by the general public in earning a livelihood.
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Central Government Employees Get 50% DA
Currently, central government employees are enjoying a 50% dearness allowance. Following the new announcement, employees will be eligible to receive 53% DA from July 1, 2024, and will receive the arrears of July, August and September in their next salary.
Over 10 million central government employees and pensioners will benefit from the 3% increase in price allowance. The move comes at a time when inflation and rising prices are putting pressure on the livelihoods of common citizens. The increase in DA will provide some relief to employees and improve their financial situation during the festive season.
Last year Government Announced a DA Hike Before the Festive Session
Last year too, the central government announced a DA hike ahead of the festival, benefiting employees and pensioners ahead of Diwali. Amending the DA is a routine task as the government has to amend it every year. Apart from the annual DA hike, central government employees enjoy many benefits.
