India: Central Government Announces 3% Increase in DA

New Delhi: Government of India has announced a major festive present for government employees by giving them a 3% hike in the Dearness Allowance (DA). This hike is expected to benefit lakhs of central government employees and pensioners.  

In a pre-Diwali gift for the central government, a raise in the dearness allowance (DA) and dearness relief (DR) for employees and pensioners by 3% was announced. This hike has been announced to compensate the employees for the price rise. This hike takes the DA from 50 per cent to 53 %, which is to be paid over and above the basic pay. This hike was announced after a cabinet meeting chaired by Prime Minister Narendra Modi on Wednesday morning.

This new rate will be effective from July 1, 2024, and is expected to bring happiness to the central government employees amid the festive season. "This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission," mentioned a statement.

This hike is expected to cost the government exchequer an additional Rs 9,448.35 crore every year and benefit about 49.18 lakh central government employees and 64.89 lakh pensioners, the statement added.

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