DA hiked by 4 per cent points to 50% for government employees
NEW DELHI, MAR 7 : The government on Thursday hiked Dearness Allowance to government employees and Dearness Relief to pensioners by 4 per cent effective from January 1 this year, announced Union Minister Piyush Goyal.
With this hike, the DA will reach 50 per cent of basic pay from the existing rate of 46 per cent.
The last DA increment occurred in October 2023, with a 4 per cent raise, elevating it to 46 per cent.
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Dearness Allowance is a component of the salary designed to offset the impact of inflation, effectively increasing the overall remuneration of employees.
The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs 12,869 crore per annum. The impact would be Rs 15,014 crore during the year 2024-25 (January 2024 to February 2025).
With the increase in DA, transport allowance, canteen allowance, and deputation allowance among others have been increased by 25 per cent. House Rent Allowance has been raised from 27 per cent, 19 per cent and 9 per cent of basic pay to 30 per cent, 20 per cent and 10 per cent, respectively.
Benefits under gratuity have been increased by 25 per cent with an increase ceiling of Rs 25 lakh from the existing Rs 20 lakh.
The burden on the exchequer due to an increase in various allowances would be Rs 9,400 crore annually.
The increase in DA and DR in accordance with the accepted formula, is based on the recommendations of the 7th Central Pay Commission.
-PTI
