This July the Indian government has increased the Dearness Allowance (DA) for employees under the 6th and 5th Pay Commissions considerably. This update will be beneficial for many central government employees and retirees who are expecting a better salary structure due to inflation in the future from 1st July 2024.
6th Pay Commission
For employees under the 6th Pay Commission the DA has been enhanced from 239% to 246% of basic pay. This increment should help to ensure that employees can visibly notice a change on the amount of money they earn within the same month.
For example, if an employee’s basic salary is ₹43,000 per month:
Earlier, they used to get DA at 239%, which were ₹1,02,770/- as per October 2014 payroll.
When the hike raises to 246%, they become ₹1,05,780, which brings an extra ₹3,010 per month.
This adjustment will assist the workers to effectively fighting the increasing cost of living more so this inflation.
5th Pay Commission: DA Boosted to 455%
The employees under the 5th Pay Commission have been given a raise in the DA rates which stands at 455% against the former 443%. This raise is even more tonic for those employees who have been under this older pay scale.
For instance, if an employee’s basic salary is ₹20,000:
In the previous ratio of 443% DA, 6001 they received ₹88,600 as DA.
Using this new rate of 455%, their DA reaches ₹91,000 and allows them an extra ₹2400 every month.
Why Is DA Crucial for Government Employees?
Dearness Allowance is another component of the salaries of employees in governments’ organizations aimed at tackling the vice of inflation. The DA is currently adjusted biannually in January and July depending on the new CPI figures.
