50% DA Allowance For 1 Crore Govt Employees, Pensioners Soon: 4% DA Hike Expected Under 7th Pay Commission


Mohul Ghosh

Mohul Ghosh

Feb 19, 2024


The central government usually announces revisions in dearness allowance (DA) for its employees and dearness relief (DR) rates for pensioners twice a year – January and July. The next DA/DR hike announcement is expected by March 2023.

50% DA Allowance For 1 Crore Govt Employees, Pensioners Soon: 4% DA Hike Expected Under 7th Pay Commission

Historically, DA changes come into effect from January 1 and July 1, while being declared in March and October. If the past trend continues, central staff can expect a 4% DA/DR raise in March, which would apply retrospectively from January 1, 2024.

Source: CPI-IW data published by Labour Bureau
*The linking factor for the conversion of base year 2016=100 to base year 2010=100 is 2.88.

Source

Over 1 Crore Staff and Pensioners to Gain

The DA and DR rates currently stand at 46%. A 4% hike would raise them to 50% – the highest level in recent times. This directly boosts monthly payouts for more than one crore central employees and pensioners dependent on DA and DR to offset inflationary pressures.

For instance, an employee with basic pay of Rs 53,500, currently receiving Rs 24,610 as 46% DA would get Rs 26,750 DA after the hike – a salary boost of Rs 2,140 per month plus arrears. Similarly, pensioners will gain higher relief every month.

The Labour Ministry releases Consumer Price Index for Industrial Workers monthly based on which DA is calculated. Despite easing inflation recently, DA has been raised successively over the last two years highlighting government employees’ purchasing capacity needs. Most expect another raise in line with precedent.


Mohul Ghosh
Mohul Ghosh
  • 1730 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Business
Dec. 8, 2022

Beat The Burden Of Medical Inflation With A Health Insurance

As disease rates rise and medical technology develops, treatment costs climb. It’s essential to understand that medical costs are not exclusively associated with hospitals. The cost of prescription drugs, diagnostic procedures, ambulance and operating room fees, consultations with doctors, and other costs are also constantly increasing. All of them could put a big strain on […]

Business
Dec. 8, 2022

3 Biggest Changes Of iOS 16.2 Update That Every iPhone User Should Know!

In its latest update Apple said that it is preparing for the iOS 16.2 update for iPhones across the world. Notably, like the previous release, there are a couple of changes coming for the iPhones.  iOS 16.2 Update Release Date So far, Apple has not announced a release date for iOS 16.2 update. Reportedly, the […]

Business
Dec. 8, 2022

300 Microsoft Employees Create Employee Union, First Time Ever: This Is How Microsoft Reacted

Around 300 workers at Microsoft Corp.’s ZeniMax Studios have commenced the process of forming a union which is said to be the first at the software giant in the US.  Here, Microsoft Corp.’s ZeniMax Studios known for popular video games including Skyrim and Fallout. Forming Union In Microsoft Corp Moreover, the quality assurance employees at […]

Business
Dec. 7, 2022

India Beats China In Air Travel Safety: Ranking Jumps From 102 To 48 In Global Aviation Safety

India’s air safety protocols and executions have improved drastically over the years, as validated by the findings of a specialized agency of the United Nations, the International Civil Aviation Organization or ICAO. The UN watchdog has upgraded India’s ranking in terms of aviation safety to the 48th position, jumping past the rankings of countries like […]

Recent Posts

Related Videos

   

Subscribe Now!

Get latest news and views related to startups, tech and business

who's online