The central government has brought festival cheer to its employees and pensioners, announcing a 3% hike in Dearness Allowance (DA). It is especially coming at the right time ahead of Diwali, in which millions of government workers will benefit.
Main Highlights of the DA Hike
1. From which date is it going to be effective? The increment in DA will be effective from July 1, 2024. Therefore, this time, it will be visible with pay slips.
2. In fact, the DA rate for central government employees and central government pensioners has been increased from the existing 42% to 45% of basic salary as the increase is 3%.
3. Eligible Employees: This pay scale hike will benefit about 47 lakh central government employees and 69 lakh pensioners, thereby having a significant impact on the total pay package of these people.
Financial Impact
This will likely add significantly to the government’s kitty. The increase in DA will raise the central exchequer’s burden by an estimated ₹12,857 crore annually. Yet, it is constructive and can help employees and pensioners cope with inflationary pressures and enjoy better purchasing power, at least during festival seasons.
Chhattisgarh Government Increases Its Quorum
In addition, the Centre government announced a DA hike for its employees. It has hiked the DA by 4%. It keeps the DA at 42% to 46%. This is another different step meant to empower the state government employees, and thus further add to the festival time good-will.
Conclusion
At least the hike of 3% DA by the center a few days ahead of Diwali is good news for its employees and pensioners, who were to face inflation levels that are at their peak, especially during the festival season. Consumer spending will also rise with this move as a relief for millions of households across India.
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