As Diwali approaches, central government employees and pensioners are likely to receive a 3% Dearness Allowance (DA) hike. This would raise the current DA rate from 50% to 53%, providing relief to over a crore employees and pensioners across the country. The official decision is expected to be made in the next Cabinet meeting, with the announcement anticipated closer to Diwali, which falls on October 31, 2024.
DA Hike and Arrears
If the hike is confirmed, employees will receive arrears for the months of July, August, and September. The increase is based on the All India Consumer Price Index (AICPI), which tracks retail price fluctuations, and the DA is revised twice annually. The move comes as inflation continues to impact household expenses, making the hike a welcome boost to take-home pay.
Last Year’s Hike and State-Level Announcements
Last year, the central government announced a similar DA hike before the festive season. In Himachal Pradesh, a 4% DA hike was recently granted to state government employees ahead of Dussehra, benefiting 1.80 lakh employees and 1.70 lakh pensioners.
With the central government’s decision pending, the expected hike will likely provide financial relief to millions of government employees just in time for the festive celebrations, easing the effects of rising prices on household budgets.
