look news india
7th Pay Commission: Central government employees may soon get good news. There is news that the government may announce a 3% increase in Dearness Allowance (DA). According to Hindustan Times report, a final decision on this will be taken in the next cabinet meeting and then an official announcement is expected around Diwali on October 31. At the same time, according to different media reports, the central government can announce it in mid-October. However, no official information regarding DA increase has been revealed yet.
What is extension?
At present the Dearness Allowance (DA) is 50 percent. However, now if the government increases DA by 3 percent, then the new rate may increase to 53 percent from July 1, 2024. This change is expected to benefit more than one crore central government employees and pensioners, the employees will also get the arrears of July, August and September. Last year, the government had announced the DA increase before the festive season. This year, Himachal Pradesh government has announced 4 percent DA increase just before Dussehra. This change is expected to benefit 180,000 employees and 170,000 pensioners of the state. The Center usually increases Dearness Allowance (DA) and Dearness Relief for employees and pensioners twice a year in January and July, with announcements usually made in March and early October.
What is Dearness Allowance (DA)?
Let us tell you that Dearness Allowance (DA) is one percent of the basic salary of the employees. It is designed to help reduce the impact of inflation on their cost of living. This allowance is usually revised every six months to reflect fluctuations in the cost of living. Dearness Allowance (DA) is determined by the All India Consumer Price Index (AICPI), which monitors retail price fluctuations and is updated twice annually. The increase in DA leads to higher take-home pay for government employees, providing some relief as inflation continues to hit households.