DA Hike by 3% for Central Government Employees from July 2024
The Union Cabinet on Wednesday (October 16, 2024) approved an additional installment of Dearness Allowance (DA) to Central government employees and Dearness Relief (DR) to pensioners to compensate price rise. The decision comes days before Deepavali.
The payments will be effective July 1 amounting to an increase of 3% over the existing rate of 50% of the basic pay/pension to adjust the cost of living and to protect erosion of the pay’s real value.
The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.07.2024 representing an increase of three percent (3%) over the existing rate of 50% of the Basic Pay/Pension, to compensate against price rise.
This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission. The combined impact on the exchequer on account of both DA and DR would be Rs.9,448.35 crore per annum.