Diwali Gift! Central Govt Employees Likely To Get 3% DA Hike

The government is also expected to take a call on increasing the rabi crop’s minimum support price (MSP) during the meeting, sources said

If approved, the DA for central government employees will increase from 50 per cent to 53 per cent of their basic pay

Source : Pexels

The Union Cabinet, led by Prime Minister Narendra Modi, is likely to give central government employees a Diwali bonus. Sources told ABP Live that the bonus is expected to be a hike in the dearness allowance (DA) of approximately 3 per cent, and the meeting for the same has started. If approved, the DA for central government employees will increase from 50 per cent to 53 per cent of their basic pay.

The government is also expected to take a call on increasing the rabi crop’s minimum support price (MSP) during the meeting, sources said.

Following the anticipated 3 per cent hike in the DA, the salary of an entry-level government employee with a basic monthly salary of approximately Rs 18,000 is expected to increase by around Rs 540. This adjustment will take effect on July 1, 2024.

The DA increase is projected to benefit more than 1 crore central government employees and pensioners, providing much-needed financial relief. Additionally, employees will receive arrears for July, August, and September, further enhancing their compensation during this festive season.

Last month, the Confederation of Central Government Employees and Workers reached out to Union Finance Minister Nirmala Sitharaman to express their concerns regarding the delay in the announcement of the DA and Dearness Relief (DR) hikes. 

While the DA is allocated to active central government employees, the DR is specifically for pensioners. Typically, the central government adjusts the DA twice a year, with changes effective from January and July. However, this year, there has been a notable delay in the announcement of the July DA increase, prompting calls for timely communication and transparency regarding these adjustments.

The most recent increase in the DA was a 4 per cent hike, which was announced in March and took effect from January 2024. This adjustment is significant as it helps employees and pensioners cope with inflation and the rising cost of living.