3% DA Hiked for Central Government (CG) Employees from July 01st 2024
Cabinet Approves 3% Increase in Dearness Allowance (DA) and Dearness Relief (DR) for Central Government Employees and Pensioners
In a significant move to provide relief against inflation, the Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved an additional instalment of Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners. The increase, effective from July 1, 2024, is set at 3% over the existing rate of 50% of Basic Pay/Pension.
This decision, which follows the accepted formula based on the recommendations of the 7th Central Pay Commission, aims to mitigate the impact of rising prices on government employees and pensioners. The adjustment comes as a response to growing concerns over inflation and the cost of living, and it serves as a financial cushion for millions of people.
Impact on Government Employees and Pensioners
The increase will benefit approximately 49.18 lakh central government employees and 64.89 lakh pensioners, helping them cope with the rising cost of goods and services. By adjusting their pay and pensions to account for inflation, the government intends to provide much-needed financial support to this large demographic.
Financial Implications
The combined financial burden of the additional Dearness Allowance and Dearness Relief will amount to Rs. 9,448.35 crore annually. This measure underscores the government’s commitment to supporting its employees and retirees, ensuring they maintain a reasonable standard of living in the face of economic challenges.
The increase in DA and DR is a routine process, occurring twice a year, as per the government’s established formula. It is meant to safeguard employees’ real income against inflation and uphold the purchasing power of pensioners.
This announcement brings welcome news to millions of government employees and pensioners, ensuring that their compensation remains aligned with the economic realities of rising prices.
