DA Hike Confirmed, 7th Pay Commission Latest Update: Central government employees and pensioners had been long waiting for a rise in their dearness allowance (DA) and dearness relief (DR). Their long wait ended today (Friday, March 28, 2024) as Centre increased DA and DR by 2 per cent. With it, both rose from their current rates of 53 per cent to 55 per cent. The increased rates for central government employees and pensioners will be applicable from January 1, 2025, the government said in a press release on Friday.
“The combined impact on the exchequer on account of increase in both Dearness Allowance and Dearness Relief would be Rs 6614.04 crore per annum. This will benefit about 48.66 lakh Central Government employees and 66.55 lakhs pensioners,” the government said.
It further said, “This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.”
Before today’s hike, DA and DR were increased in July 2024 from 50 per cent to 53 per cent.
What is dearness allowance (DA) for government employees?
Dearness allowance is an amount given to government employees to adjust their basic salaries to rising inflation. The basic salaries are decided in a pay commission after every 10 years, but DA ensures a periodic rise to the employees’ salaries.
When does government increase DA?
The government increases DA twice a year. The announcement may be late, but the DA rate is calculated as per the All India Consumer Price Index (Industrial Workers) reading for January and December.
What is AICPA (IW) Index?
It is an index taken as a benchmark to calculate DA for central government employees. Governed by the Labour Bureau of the Ministry of Finance, the index issues monthly readings of DA for Centre and states.
Can DA also be increased for state government employees?
The Cabinet approves DA only for central government employees. States mostly follow suit. However, they may not follow it or may increase DA out of turn.
Total salary on Rs 24,600 basic pay (at 53% and 55% DA)
We are not calculating any other allowances such as house rent allowance (HRA) and travelling allowance (TA). These are projections as actual calculations may vary.
| Basic pay | ₹ 24,600 |
| DA at 53% | ₹ 13,038 |
| Total pay | ₹ 37,638 |
| DA at 55% | ₹ 13,530 |
| Projected revised salary | ₹ 38,130 |
Total salary on Rs 37,500 basic pay (at 53% and 55% DA)
| Basic pay | ₹ 37,500 |
| DA at 53% | ₹ 19,875 |
| Total pay | ₹ 57,375 |
| DA at 55% | ₹ 20,625 |
| Projected revised salary | ₹ 58,125 |
Total salary on Rs 54,300 basic pay (at 53% and 55% DA)
| Basic pay | ₹ 54,300 |
| DA at 53% | ₹ 28,779 |
| Total pay | ₹ 83,079 |
| DA at 55% | ₹ 29,865 |
| Projected revised salary | ₹ 84,165 |
Total salary on Rs 71,700 basic pay (at 53% and 55% DA)
| Basic pay | ₹ 71,700 |
| DA at 53% | ₹ 38,001 |
| Total pay | ₹ 1,09,701 |
| DA at 55% | ₹ 39,435 |
| Projected revised salary | ₹ 1,11,135 |
