NEW DELHI, Oct 16: The central government has announced a 3% hike in Dearness Allowance (DA) for employees and Dearness Relief (DR) for pensioners, effective from July 1, 2024. This increase, approved by the Union Cabinet, will benefit over 1 crore central government employees and pensioners just in time for the Diwali festival.
Union Minister Ashwini Vaishnaw, after the Cabinet meeting, confirmed the hike, which raises DA/DR by 3 percentage points from the existing rate of 50% of basic pay or pension. The move, based on the 12-month average of the All India Consumer Price Index for Industrial Workers, follows a previous increase of 4% in March 2024.
The financial burden of this DA/DR hike will amount to Rs 9,448 crore annually, benefiting approximately 49.18 lakh employees and 64.89 lakh pensioners. This increase adheres to the Seventh Central Pay Commission’s recommendations to help offset inflation
