DA hike update: Central government employees can expect big Diwali gift

The expected hike in DA would mean that over 1 crore central government employees and pensioners will receive their October salaries with the new DA rate, along with three months' worth of arrears.

In Short

• Central government employees expect 3% DA hike announcement
• DA increase to benefit both employees, pensioners significantly
• Delay in DA announcement linked to Haryana elections outcome

Central government employees are likely to receive good news about a salary hike as media reports suggest that the government will announce a 3% increase in dearness allowance (DA) ahead of Diwali. This increase would mean that over 1 crore central government employees and pensioners will receive their October salaries with the new DA rate, along with three months’ worth of arrears.

The Centre adjusts the DA twice a year, with changes effective from January and July. However, announcements about these hikes usually happen around March and September. Typically, the January DA hike is announced around the time of Holi in March, while the July hike is declared close to Diwali, which usually falls in late October or early November.

This year, the announcement for the July DA hike has been delayed more than usual. Initially, it was expected that the announcement would take place before the Haryana elections, which were held on October 5. However, since that did not happen, reports now indicate that the hike will likely be announced just days before Diwali, which is on October 31 this year.

The dearness allowance is a crucial part of government employees' salaries. It aims to help them cope with the rising cost of living caused by inflation. The DA is calculated based on the All India Consumer Price Index (AICPI), which tracks changes in retail prices.

Earlier this month, the Confederation of Central Government Employees and Workers wrote a letter to Finance Minister Nirmala Sitharaman, highlighting their concerns about the delay in announcing the DA hike for employees and pensioners.

Currently, the DA stands at 50%. If the government proceeds with the 3% increase, it will rise to 53% from July 1, 2024. This change would provide significant financial relief to central government employees and enhance their overall compensation.

As the Diwali celebrations approach, the expected DA hike brings hope for many government employees and pensioners, who are eagerly waiting for this important announcement.