Wednesday brought great news for Central Government employees. The Indian government has announced a 4% increase in Dearness Allowance (DA) for Central Government employees, giving them a big gift just before Diwali. As a result, the DA for them has increased from 42% to 46%. There was already an expectation that Central Government employees could receive a 4% DA Hike this time. This decision by the government will benefit nearly 1 lakh Central Government employees and pensioners, leading to a significant increase in their salary and pension.
Changes in Dearness Allowance (DA) have a significant impact on the salary of Central Government employees. The government revises DA twice a year, with the benefits effective from January 1st and July 1st. It’s worth noting that there are approximately 52 lakh government employees and 60 lakh pensioners in the country who will benefit from this significant decision.
Regarding the salary increase due to the DA Hike, if a government employee receives a basic pay of Rs. 18,000, their current DA is Rs. 7,560 at a rate of 42%. After a 4% increase, at a rate of 46%, it will be Rs. 8,280.
This implies they will see an immediate increment of Rs. 720 in their compensation.
For officials getting the most extreme essential compensation, after a 4% DA Climb, their compensation will increment by Rs. 2,276.
The public authority settles on choices on DA Climb by considering the expansion rate. The higher the expansion, the more prominent the normal expansion in DA for representatives. The choice is ordinarily founded on the Customer Value File for Modern Specialists (CPI-IW). In July 2023, the CPI-IW expanded by 3.3 focuses to reach 139.7, which was around 0.90% higher than a similar period last year. In June 2023, it was 136.4, and in May, it was 134.7.
Aside from DA, a few other huge choices were made in the PMO Bureau meeting. As well as supporting a 4% DA Climb for Focal Government representatives, the Bureau endorsed rewards for rail route workers and a Rs. 150 expansion in the Base Help Value (MSP) for wheat. Moreover, endorsement was conceded for a mega sunlight based power transmission line from Ladakh to Haryana.