The Government of India, responding to demands for an increase in dearness allowance (DA), has raised the DA of employees and pensioners by 3%. Recently, the Modi government announced this increase as a special Diwali gift for its employees. To support the economic well-being of central employees and pensioners amid rising inflation, the government has increased their DA. Additionally, there are reports that the government may soon merge this DA into the basic salary.
DA Raised from 50% to 53%
Considering inflation, the central government has raised the DA of its employees and pensioners by 3%. This 3% increase in DA has been given as a substantial benefit on the occasion of Diwali, bringing the DA of employees and pensioners from 50% to 53%. According to some reports, the government may decide to merge this increased DA into the basic salary. Let’s discuss this information in detail.
Discussion on Merging DA into Basic Salary
Based on discussions in video reports, it’s being said that the government might decide to merge both the DA and Dearness Relief (DR) into the basic salary before the next scheduled DA revision in January. However, the government hasn’t officially confirmed this yet and still holds to its previous decision regarding DA exceeding 50%.
When Will the DA for Central Employees Increase?
The recent 3% DA hike has been effective from July 1, 2024. The next DA revision could be expected by Holi 2025. Experts believe that the government may wait before merging the DA into the basic salary.
