Central govt staff likely to receive 3-4 % raise in DA ahead of Diwali: Report

The DA percentage adjustment is based on the All India Consumer Price Index (AICPI).

The Centre is expected to announce a 3-4 percent increase in the Dearness Allowance (DA) for Central government employees ahead of Diwali. While the official announcement is anticipated in October, no formal details have been shared yet. Last year, the DA hike was revealed in the first week of October.

According to a report by DNA, this DA hike is likely to increase the salaries of Central government employees. For entry-level employees with a basic salary of Rs 18,000, this could translate to an additional Rs 540-720 in their monthly pay.

For employees with a monthly salary of Rs 30,000 and a basic pay of Rs 18,000, the current DA is Rs 9,000, which constitutes 50 percent of their basic salary. A 3 percent hike would raise the DA to Rs 9,540, while a 4 percent increase would boost it to Rs 9,720 per month.

While DA is granted to government employees, pensioners receive Dearness Relief (DR). Both allowances are adjusted twice a year, in January and July. Currently, more than one crore central government employees and pensioners receive a DA of 50 percent.

In March 2024, the government had already implemented a 4 percent increase in both DA and DR, bringing them to 50 percent of the basic pay. The DA percentage adjustment is based on the All India Consumer Price Index (AICPI).

The Centre usually announces changes to DA and DR for employees and pensioners twice a year, with announcements usually occurring in early March and October.