DA hike announcement soon? All eyes on Union Cabinet meeting

Usually, the Centre announces revisions to DA and DR twice a year - in January and July - with the official declarations often following later.

The Centre is expected to announce an increase in the dearness allowance (DA) and dearness relief (DR) for government employees after its Cabinet meeting on Wednesday.

The Confederation of Central Government Employees and Workers had recently addressed Finance Minister Nirmala Sitharaman in a letter, expressing concern over the delay in the announcement of the DA/DR hike, according to a News18 Hindi report.

Usually, the Centre announces revisions to DA and DR twice a year - in January and July - with the official declarations often following later.

Government employees and pensioners receive their salaries and pensions reflecting these adjustments, along with arrears covering the previous three months (July to September) in October. Last year, the DA hike was disclosed in the first week of October.

As per the News18 Hindi report, the government may implement a 3 percent increase in DA, leading to a marginal hike from the current 50 percent to 53 percent.

The most recent DA adjustment, a 4 percent increase, was announced this March, effective from January 2024. While DA is applicable to serving employees, pensioners receive DR.

Currently, over one crore central government employees and pensioners are benefitting from a DA rate of 50 percent. The anticipated adjustment could elevate DA to 54 percent. This adjustment would be effective from July 1, 2024, though, with employees receiving a three-month arrears in their October salaries.

The DA hike is primarily based on the Consumer Price Index (AICPI), which tracks retail price fluctuations across various sectors.