The Union Cabinet has approved a 3&nbsp;per cent&nbsp;increase in Dearness Allowance (DA), raising it from 50&nbsp;per cent to 53 per cent of basic pay. This decision was announced on Wednesday by Information and Broadcasting Minister Ashwini Vaishnaw.

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<h2>Effective date and impact</h2>

The DA hike will take effect from July 1, 2024.&nbsp;This increase is expected to provide significant relief to around 11.5 million (1.15 crore) central government employees and pensioners facing the pressures of rising living costs.

In a related move, Chhattisgarh Chief Minister Vishnu Dev Sai announced a 4&nbsp;per cent&nbsp;hike in Dearness Allowance for state government employees, increasing it to 50&nbsp;per cent&nbsp;of their basic salary, effective October 1, 2024.

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<h2>Understanding dearness allowance</h2>

Dearness Allowance is a financial benefit provided to government employees to help offset the effects of inflation. It is calculated as a percentage of the employee's basic salary and is revised every six months based on the All India Consumer Price Index (AICPI), which tracks retail price changes.

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This latest hike follows a 4 per cent increase in March 2024, which had previously raised DA to 50&nbsp;per cent&nbsp;

The Seventh Pay Commission states that when DA hits 50&nbsp;per cent&nbsp;or more, certain allowances, including house rent allowance (HRA), must be revised. This took place earlier this year.&nbsp;

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This ongoing commitment to revising allowances aims to ensure that government employees receive adequate compensation in light of inflationary pressures.

(With inputs from agencies)

The Union Cabinet has approved a 3 per cent increase in Dearness Allowance (DA), raising it from 50 per cent to 53 per cent of basic pay. This decision was announced on Wednesday by Information and Broadcasting Minister Ashwini Vaishnaw.

The Union Cabinet has approved a 3 per cent increase in Dearness Allowance (DA), raising it from 50 per cent to 53 per cent of basic pay. This decision was announced on Wednesday by Information and Broadcasting Minister Ashwini Vaishnaw. Also read | Samsung India workers call off strike after thirty-eight days Effective date and impact The DA hike will take effect from July 1, 2024. This increase is expected to provide significant relief to around 11.5 million (1.15 crore) central government employees and pensioners facing the pressures of rising living costs. In a related move, Chhattisgarh Chief Minister Vishnu Dev Sai announced a 4 per cent hike in Dearness Allowance for state government employees, increasing it to 50 per cent of their basic salary, effective October 1, 2024. Also read | German envoy performs Indian rituals after buying new EV; ties 'lemon and chill', smashes coconut Understanding dearness allowance Dearness Allowance is a financial benefit provided to government employees to help offset the effects of inflation. It is calculated as a percentage of the employee's basic salary and is revised every six months based on the All India Consumer Price Index (AICPI), which tracks retail price changes. Also read | ‘Complete defiance,’ SC scolds Punjab and Haryana over rising cases of stubble burning This latest hike follows a 4 per cent increase in March 2024, which had previously raised DA to 50 per cent The Seventh Pay Commission states that when DA hits 50 per cent or more, certain allowances, including house rent allowance (HRA), must be revised. This took place earlier this year. Also read | SCO roundup: India opposes China's OBOR, Jaishankar schools Pakistan, and more This ongoing commitment to revising allowances aims to ensure that government employees receive adequate compensation in light of inflationary pressures. (With inputs from agencies)

Diwali bonanza: Govt announces 3 per cent hike in DA for central govt employees

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Diwali bonanza: Govt announces 3 per cent hike in DA for central govt employees