In the meeting held on Wednesday, the Union Cabinet raised dearness allowance and dearness relief by 3 percent. The total DA will rise from 38 percent to 45 percent with a 3 percent increase. The cabinet meeting this morning made this decision, a couple of weeks ahead of Diwali.
This comes as a huge relief for the central government workers during the holiday season. Government workers and retirees receive compensation for the rise in cost of living allowance. This stipend is updated semi-annually and determined using the most recent industrial worker consumer price index.
This decision of the central government will be advantageous for millions of government employees. The calculation of dearness allowance is based on the All India Consumer Price Index. DA is reviewed every half a year. Retired central government employees receive dearness relief. Following the rise in DA, the modification becomes active in January and July.
The DA announcement is made twice a year, in March and September. The increase in dearness allowance announced in January will be made in March. Likewise, Diwali is when the announcement of a DA hike in July is revealed. Following a three percent increase in DA, the basic salary of a lower-level government worker will rise by 10 percent.
The announcement for DA is made in both March and September. The increase in dearness allowance that was announced in January will be effective until March. Likewise, the increase in dearness allowance announced in July will be in effect until Diwali. Following the three percent increase in dearness allowance, an entry level government employee’s basic salary is projected to rise by Rs 540 per month.
When is the new increase in dearness allowance scheduled to take effect?
The updated dearness allowance will come into effect on July 1, 2024. This will guarantee that both employees and retirees can take advantage of the higher allowance during the festive period. This choice provides financial relief in the face of increasing inflation and cost of living.
In addition to this, before Diwali and the festive season, Chhattisgarh Chief Minister Vishnu Dev Sai declared a 4% increase in dearness allowance (DA) for state government workers. This will result in half of the basic salary. This hike is scheduled to start on October 1.