Central government employees may soon have something to cheer about. Amid the continuing wait over the constitution of the 8th Pay Commission, reports are emerging that the Centre may soon announce a DA hike before Diwali. If this buzz materializes, it will benefit around 1.2 crore employees and retirees. This step will boost the spending power of the employees and also help improve the consumption trend in the festive season.
India has seen a renewed spending pattern during the festive season of Dussehra and Diwali. This year, the festivals will be celebrated in October.
What is the current DA level?
At present, central government employees get DA or dearness allowance at 55 percent. The tentative hike of three percent will help the staff cope with inflationary pressures. Usually, the Centre announces DA hikes twice a year – in January and July. Analysts say that the July hike will be somewhere between 3 and 4 percent, which is likely to be announced soon.
The DA hike update will help calm the nerves of central government employees who have been waiting for the 8th Pay Commission updates since its announcement by Prime Minister Narendra Modi on January 16.
When will govt announce DA hike?
As per the current norms, the Centre announces the DA hikes in February or March and September-October period. However, the hike is applied in retrospective manner. This means the increase in DA will be applicable form January and July. Hence, the October DA hike will be applied from July retrospectively.
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