Government’s 4% DA Hike for Government Employees: सरकार ने महंगाई भत्ते में 4% की वृद्धि को दी मंजूरी

Government’s 4% DA Hike for Government Employees: From January 1, 2024, Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners will go up by 4%, as approved by the Union Cabinet. The decision was taken on Wednesday, March 7, 2024, in a cabinet meeting. The DA, which is included in the salaries of central government employees, aims to reduce the impact of inflation. Among other benefits, salary components include household rent allowance (HRA), educational allowance for children, childcare allowance, hotel allowance, travel allowance for tours, cash allowance expenses, clothing allowance, medical allowance, and daily allowance, which will also gradually increase along with DA. In this article, we will be discussing more about the Indian government’s DA for central government employees and other details.

The increase in Dearness Allowance is expected to incur an additional cost of Rs 12,868.72 per month per employee in the central government fund. The increase is largely determined by the central government using Consumer Price Index (CPI) data for industrial workers. Last year’s average was 392.83. As a result, DA will be 50.26 percent of the minimum wage. The Department of Labor, which is part of the Department of Labor, publishes monthly data on the CPI-IW. DA is referred to as employees, while DR is referred to as pensioners. DA and DR generally grow twice a year, in January and July. The most recent increase was for October 2023, when DA increased from 4% to 46%.

When we talk about the salary of a central government employee on an average basis, the salary depends on their rank, position, designation, etc. A new pay structure for defense personnel has been proposed by the 7th Pay Commission. It applies to officer level, posting area, branch, and designation. For those working in the defense sector, the base salary is Rs 5,400 (the maximum salary is Rs 15,600). The monthly salary of Defense Force members ranges from Rs 29,900 to Rs 1,04,400, while the grade ranges from Rs 5,400 to Rs 16,200. Currently, Dear Allowance (DA) is 50% of the salary of central government employees and is linked to certain allowances and components of his salary.’

Government’s 4% DA Hike for Government Employees – Overview

Allowance Name	Dearness Allowance
Allowance Providers	Central Government
Beneficiaries	Central Government Employees and Pensioners
Central Government Beneficiaries (Nos)	48.18 Lakhs
Pension Beneficiaries (Nos)	67.95 Lakhs
Dearness Allowance Increment	4%
DA Increment Effective Date	1st January 2024 (Started)
Pensioners Benefits	Guaranteed
DA Increment Approval Date	7th March 2024
Salary Impact	Basic Pay + DA + Other Allowance = Increment
Other Allowances Impact	HRA + TA + Canteen Allowance + Other Allowance = Increment
DA Frequency	Half-yearly, Quarterly, and Yearly
Annual Cost to Exchequer	Rs. 12,868.72 Crores
DA Calculation Method	(Average Index – Base Index) / Base Index * 100
Other Details	Check Article

The government of India, especially the central government, has already approved an allowance scheme increase for all those who are working as central government employees and pensioners. With effect from January 1, 2024, there was a plan for increments, and finally, on March 7, 2024, the allowance scheme got approved, and now all the central government employees will get a hike of 4% easily, and for pensioners, the government will provide a 46% to 50% hike. The dearness allowance cost to the exchequer is almost Rs. 13,000 crore. The dearness allowance will be given on a half-yearly, quarterly, and yearly basis. The dearness allowance is calculated on the average index subtracted from the base index, which is then divided by the base index multiplied by 100. For more information, you can simply read this article fully for better understanding.

Government’s 4% DA Hike for Government Employees – What is DA?

Dearness Allowance, or DA for short, is a cost-of-living adjustment that helps workers and retirees keep pace with inflation by reducing take-home pay. This is a component of the basic wage that can change depending on the CPI or WPI. Calculated in a standard way. The DA change is calculated by averaging 12 months from the baseline index. A common way of preserving the purchasing power of employees and pensioners in the face of inflation is the recent government approval of a 4% increase in DA for central government employees and pensioners.

Government’s 4% DA Hike for Government Employees – Other Allowances

Apart from the 25% increase in Dearness Allowance, other allowances, including transportation, catering, and transfers, will also increase by 25%. In addition, rent will now be 30% of basic pay, up from 19%, and the deputation allowance will be 10%. The increase in various subsidies will put an annual burden of Rs 9,400 crore on the exchequer. There were six payments to central government employees that the 7th Pay Commission suggested changing: preferred allowance, house rent allowance (HRA), transport allowance, child education allowance, traveling allowance while traveling, and delegation allowance.

Government’s 4% DA Hike for Government Employees – DA Effective and Approval Date

The central government had already stated on March 7, 2024, that they have approved the dearness allowance increment of 4% for all the central government employees and 46% to 50% for all the central government pensioners who used to work for the central government and are currently retired. Well, the central government had already stated before 2024 started that they would be introducing this scheme for all the central government employees and pensioners, and on January 1, 2024, the plan for DA increment will come into effect. Now, every central government employee can enjoy the increment that they are provided with basic pay and other allowances.

Frequently Asked Questions – Government’s 4% DA Hike for Government Employees