With an expected increase of ₹720 in Dearness Allowance (DA) sometime before Holi, this announcement is like a great relief to all government employees. Soon, there will be an announcement with a revised DA, which would depend on new salary increments for millions of employees. The inflation was going up at that time, with barely anything to get by for employees with their daily necessities.
DA Hike Announcement Before Holi
According to rules, the Dearness Allowance (DA) is revised every January and July on the basis of the Consumer Price Index (CPI). This is done to alleviate the rising cost of living for employees. Informs a well-placed source, also being considered is an increase in the DA sanctioned by the Central Government from the current 46 percent to 50 percent-increase of 4 percent. Thus, an employee with the compulsory basic pay of ₹18,000 will require an increase of at least ₹720 in his monthly DA.
How Much Salary Will Increase?
Impact of DA hike will vary with respect to basic salary level of the employees. Estimating calculations would suggest how much extra would the employees expect with the hike:
- Basic salary of ₹18,000→ Increase of ₹720/month (₹8,640/annum)
- Basic salary of ₹25,000 → Increase of ₹1,000/month (₹12,000/annum)
- Basic salary of ₹50,000 → Increase of ₹2,000/month (₹24,000/annum)
- Basic salary of ₹1,00,000 → Increase of ₹4,000/month** (₹48,000/annum)
Larger increments would benefit even more senior employees.
Impact On Pensioners And DA Arrears
Since the Dearness Relief (DR) to the pensioners is adjusted for the adjustment of increase at the same DA scale, the DA hike adjustment will have great importance for all retired employees. This means a majority of pensioners would feel an increase in their monthly pension. Also, in case the authorities announce the hike in March, it should be backdated and apply from January, so that employees might get DA arrears for two months (January-February 2025).
Conclusion
DA coming to be hiked before Holi got out into the big bag-the hope before inflation hits hard on central government employees and pensioners. The announcements can be anytime now, and with a likely disbursement by March, the employees shall keep watching out for notification from the government.”
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