The increase in Dearness Allowance (DA) is of utmost importance for central government employees, as it helps them cope with the rising cost of living. This monthly adjustment helps employees keep track of inflation. With a new raise expected in October 2024, employees are curious about how much their salary is likely to increase and what the potential percentage could be.
What is Dearness Allowance (DA)?
Dearness Allowance is a fixed percentage based on the basic pay of a central government employee and is designed to reduce the impact of inflation measured through the price index. It is revised twice a year, taking into account the index of cost of living.
7th pay commission
When will the next DA increase happen?
As per estimates, the next DA hike may be announced in October 2024, possibly before Diwali. Historically, DA hikes are announced at the beginning of the month, and this time a 3%-4% increase is expected. However, there is no official confirmation yet.
Last year, the DA hike was announced in the first week of October, and the same deadline is expected this year too. The same pattern may be seen for 2024, which will benefit both government employees and pensioners.
What is the impact of DA increase on salary?
The DA increase directly impacts the total salary of the employee. For example, if an employee’s basic pay is ₹18,000 and the current DA is ₹9,000 (50% of basic pay), a 3% increase will increase the DA to ₹9,540. Similarly, a 4% increase will take DA to ₹9,720.
DA modification frequency
DA is usually revised twice a year, depending on the rank or post of the employee. These amendments usually occur in January and July, but announcements are made around March and October. The January DA hike is usually announced around Holi, while the July hike is usually announced around Diwali.