look news india
On Friday, the Union Cabinet approved an increase of 2 percent in dearness allowance for central employees. With this increase, the DA will increase from 53 percent to 55 percent, which will increase the salary of employees before the expected 8th Pay Commission. The last increase in dearness allowance was in July 2024, when dearness allowance was increased from 50 percent to 53 percent. The cabinet has approved a 2 percent increase in DA/DR. The cabinet has approved Rs 7716 crore for increase in DA and DR from 1 January 2025.
Increase in dearness allowance will benefit central government employees, pensioners and family pensioners. The rates of dearness allowance are determined on the basis of data from the All India Consumer Price Index (AICPI-IW) for industrial workers.
What is dearness allowance?
Dearness allowance (DA) is a financial advantage given to government employees to compensate inflation and ensure that their salary remains in line with increasing inflation. While the basic salary is determined by the Pay Commission every 10 years. It is calculated as a percentage of basic salary and is revised every six months based on price increase.
There are two types of this – first for government employees and second for public sector employees. DA is taxable, so it should be mentioned while filing income tax.