This can prove to be good news for employees and pensioners of the central government as it has been decided to raise the Dearness Allowance by the Indian government. This will lead to decreased inflationary pressures. An addition to the cost of living, dearness allowance is given to employees and pensioners, and considered as a variable in terms of inflation rates and Consumer Price Index.
Who stands to gain?
DA rise will first and foremost help increase salaries of central government employees and pensioners. Those in favor of it are:
1. Working Employees: The monthly salary of more than 50 lakh working government employees is likely to increase to a great extent.
2. Pensioners: Around 65 lakh or 6.5 million pensioners too will be benefited by it. It will greatly alleviate their burden, particularly when most pensioners have just fixed incomes in the meanwhile.
3. State Govt Employees: The state governments are also likely to follow the surge in DA percent for their employees
% Increase in DA
As per the above sources, the DA increase may be between 3% and 4% so that the total DA will be between 46% or 47% of the basic salary. The increase comes from the government’s own rules of altering DA every six months owing to inflation.
Financial Result for beneficiaries
A 3% DA hike translates into:
– For Employees, this means ₹5,000 to ₹10,000 annually, depending upon the pay scale.
– For Pensioners, pensioners with more extensive basic pensions will also see a massive improvement in their monthly payouts
How Soon Will It Be Implemented?
Revised DA is expected to come into effect from July 2024, and arrears will be paid as a one-time amount once declared officially.
In conclusion, the DA hike is a welcome move for government employees and pensioners, helping them cope with rising prices. Wait for the official declaration as it will state and confirm the percentage and timeline of such increases.
