Diwali Bonus: 3% DA Hike Announced For Central Government Employees

After this hike, the salary of an entry-level government employee, currently earning a basic monthly salary of around Rs 18,000, is projected to increase by approximately Rs 540.

The government has approved a 3 per cent increase in the Dearness Allowance (DA) for central government employees and pensioners ahead of Diwali on Wednesday. Before this adjustment, the DA was set at 42 per cent. With the proposed increase, the DA and Dearness Relief (DR) will rise to 45 per cent, effective July 1, 2024.

This DA hike for central government employees has raised from 50 per cent to 53 per cent of their basic pay. After this hike, the salary of an entry-level government employee, currently earning a basic monthly salary of around Rs 18,000, is projected to increase by approximately Rs 540. 

The DA increase is expected to benefit over 1 crore central government employees and pensioners. Additionally, employees will receive arrears for July, August, and September, further boosting their compensation during this festive season.

Last month, the Confederation of Central Government Employees and Workers contacted Union Finance Minister Nirmala Sitharaman to voice their concerns about the delay in announcing the DA and Dearness Relief (DR) increases this time.

While the DA is provided to active central government employees, the DR is designated for pensioners. The central government typically adjusts the DA twice in a year, with changes effective in January and July. However, this year has seen a significant delay in the announcement of the July DA increase, raising calls for improved communication and transparency regarding these adjustments.

Additionally, with the festive season on the horizon, this DA hike is anticipated to stimulate consumer spending and bring much-needed joy to central government employees and pensioners.

The DA increase announced before this was a 4 per cent hike announced in March, which took effect in January 2024. This adjustment is crucial for helping employees and pensioners manage inflation and the rising cost of living.