look news india
The central government may soon announce a big Diwali gift for government employees and pensioners. According to information received from sources, the government may soon announce the second increase in dearness allowance and dearness relief. The government led by Prime Minister Narendra Modi may approve an increase of 3 percent. At present DA is 50 percent. That means now dearness allowance will increase to 53 percent.
No possibility of release of outstanding amount
However, the government is unlikely to release 18 months of dearness allowance and dearness relief arrears, which were put on hold during the COVID-19 pandemic. No official announcement has been made in this regard. DA is calculated on the basis of Consumer Price Index for Industrial Workers (CPI-IW) published monthly by the Labor Bureau. It is calculated as a percentage of basic salary.
Dearness allowance is revised twice a year.
This increase will benefit thousands of central government employees and pensioners, whose salaries are decided based on the recommendations of the Seventh Pay Commission. The previous DA hike, effective from January 1, 2024, was announced on March 7, 2024, increasing DA to 50 per cent. It is known that the government usually updates DA and DR twice a year – in March and September.
What is dearness allowance?
Dearness Allowance (DA) is the money given to maintain the standard of living of government employees despite rising inflation. This money is given to government employees, public sector employees and pensioners. DA is calculated every 6 months according to the current inflation of the country. It is calculated on the basis of salary related to the basic salary of the employees. Dearness allowance may vary for employees in urban, semi-urban or rural areas.