Indian central government employees are eagerly awaiting the announcement of a dearness allowance, or DA, hike in October as a part of 7th pay commission, just in time for Diwali. Currently, the DA stands at 50% of the basic pay, following a 4% increase in March 2024.
The upcoming announcement is projected to bring an increase of 3-4%, according to various media outlets, aligning with the government's biannual review of DA, which typically occurs in January and July. The government raised the DA in the first week of October last year, setting expectations for a similar timeline this year.
The dearness allowance is designed to help employees cope with inflation by adjusting their salaries based on the Consumer Price Index. Currently, over one crore central government employees and pensioners benefit from this allowance, which is vital in offsetting rising living costs.
DA is provided to government employees, whereas Dearness Relief, or DR, is intended for retirees.
The DA hike formula is based on the average of the All India Consumer Price Index, or AICPI, for the previous 12 months, making it a crucial aspect of salary calculations for government employees. While no official confirmation has been released regarding the specific percentage increase, the upcoming announcement is highly anticipated as employees look forward to the potential financial relief it may provide.
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