The central government is likely to give some positivity to its employees and pensioners soon. According to some media news, the government may issue an order on the hike in Dearness Allowance (DA) and Dearness Relief (DR) by the end of September or in the first week of October.
Possible Increase in DA
As of now, the government might raise the DA by 3% which will make the hike from the present 50% to 53%. But this increase will only come into force if it is approved by the Ministry of Finance.
How DA is Determined
The central government reviews DA twice a year, first in January and then in July. This revision is based on the All India Consumer Price Index for Industrial Workers (AICPI-IW) which quantifies the inflation rate. This year alone the DA was raised from 46% to 50%.
Delay in July 2024 DA Hike
The DA increase was scheduled for July 2024, but the decision has not been made yet. This update has been long awaited by the employees and the pensioners. If DA is raised in September or October, the employees could be given arrears for the months of July, August and September.
Signs of DA Hike
There are some signals that point to the fact that a DA increase is imminent. The AICPI-IW index in June 2024 was 141.5 points and the DA figure is very close to 53.36%. Furthermore, the DA hike is already known to be on the list of the Cabinet meeting.
Impact on Employees
If DA is to increase by 3%, then the salary of employees is set to rise drastically. Beside the back payments from the previous months, employees are to receive decent sum of money in the next paycheck.