Centre hikes DA to 63% for central govt employees:Move to benefit 48 lakh employees 68 lakh pensioners

The Cabinet on Wednesday approved a 3% increase in DA (Dearness Allowance) for central govt employees. DA is extra money paid to government employees to help them cope with inflation and rising living costs. The 3% increase means central government employees will receive DA at a rate 3 percentage points higher than before, calculated as a percentage of their basic salary. The latest increase comes after the Cabinet approved a 2% DA and Dearness Relief (DR) for central government employees and pensioners in April, taking the rate to 60% of basic pay. Now, after 3% hike, the total DA has increased to 63%. Impact on Employee Salaries: The direct increase in salary following a Dearness Allowance (DA) hike is calculated based on an employee’s basic pay: For Minimum Basic Salary: An employee with a basic pay of ₹18,000 will see a monthly increase of ₹540 following the 3% hike. For Higher Pay Scales: A senior official with a basic salary of ₹56,100 will get a direct monthly raise of approximately ₹1,683. Payment of Arrears: Since the decision is effective retroactively from July, employees will receive arrears for July, August, and September along with their upcoming salary. Allowance Revised Twice a Year The Central Government revises DA and Dearness Relief (DR) for employees and pensioners twice every year. The first revision usually takes effect from January, and the second from July. The latest announcement applies to the July cycle. The government assesses inflation using data from the All India Consumer Price Index for Industrial Workers (AICPI-IW) and adjusts the allowances accordingly. Designed to Offset Rising Inflation Dearness Allowance (DA) is paid to serving government employees to help them deal with the rising cost of living. It is fixed as a percentage of the employee’s basic salary. Dearness Relief (DR) is a similar benefit provided to retired employees (pensioners) on their basic pension. The primary objective of both DA and DR is to cushion the impact of inflation and the rising prices of daily essentials on employees and retirees.