Central government employees likely to get 3 per cent DA hike ahead of Diwali

In a festive season boost for central government employees, the central administration is likely to unveil a 3 per cent increase in the Dearness Allowance (DA) just in time for Diwali. The official announcement is expected to coincide with the celebrations around October 31, pending the outcome of an upcoming Cabinet meeting.

The Dearness Allowance, which is recalibrated biannually, is determined using the All India Consumer Price Index (AICPI). The index tracks the movement in retail prices, making the DA a crucial component in protecting government employees’ purchasing power against inflation. Should the 3 per cent increase be sanctioned, the current DA rate of 50 per cent would be raised to 53 per cent, effective from July 1, 2024. This adjustment would directly impact over one crore central government employees and pensioners, who would also receive arrears for July, August, and September.

The anticipated announcement echoes a similar move from the previous year when the central government declared the DA hike prior to the festive season. Adding to the early festivities, the Himachal Pradesh government recently announced a 4 per cent DA hike ahead of Dussehra, benefiting approximately 1.80 lakh employees and 1.70 lakh pensioners in the state.

Also read: Gauhati Medical College reports 120 accident cases in last 48 hours amidst Puja festivities