The Central Government Employees Get a 3% DA Hike. Central government employees can now celebrate as the Dearness Allowance (DA) has been raised by 3%. With this increment the DA rises from 50% to 53% of their basic salary. The announcement has come in the form of Diwali gifts for employees who receive monetary benefits from it.
Will DA be added to the Basic Salary?
These talks have begun after the 3% DA hike on October 16, 2024, regarding whether the DA will be merged with the basic salary. This has happened in the past, the independence now and then, such as during the 5th and 6th Pay Commissions. Previously, in the year 2004 the DA was merged with the basic salary when it was more than 50% but the rules are change now.
Government’s Stand on the Issue
Regarding, the erasure of DA with basic pay, the Union Minister Ashwini Vaishnav said that the discussions are still going on but no final decision has been taken so far. The topic was also later discussed in the 5th and 6th Pay commissions and is still debatable.
Impact on Salary Structure
That way, there are distinct implications to the salary structure should the DA be included with the basic salary. This could impact on other allowance, and other benefits that the employees are currently enjoying. Even though the government is mulling over this step, they have not decided on it yet.
This increase in DA has added good news for government employees and they are now waiting to know whether arrears of DA are included in its pay of basic salary. This last decision will decide how either their total compensation or salary and emoluments will be affected.
