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Good News For Government Employees! 4% Expected DA Hike In March 2024: Reports | Personal Finance News

Byusanewscart.com

Jan 4, 2024
Good News For Government Employees! 4% Expected DA Hike In March 2024: Reports | Personal Finance News

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New Delhi: In a positive development for central government employees, there are expectations of a 4 percent increase in dearness allowance (DA) for the period commencing January 1, 2024. Reports suggest that the official announcement regarding this hike may be made in March 2024.

The increase comes in light of the AICPI index reaching 139.1 percent, reflecting the impact of rising prices. If the government announces the 4 percent DA hike, it will elevate the dearness allowance to 50 percent. (Also Read: Vivo Launches X100, X100 Pro In India: Check Price, Specifications, And More)

In the previous DA revision in October, the government had raised the dearness allowance by 4 percent, bringing it to 46 percent, effective from July 1, 2023. (Also Read: Google’s Pixel 8 Series Gets First Update In 2024: Check How It Is Beneficial For Users)

Dearness Allowance And Dearness Relief:

Dearness allowance serves as a compensatory amount in employees’ salaries to counter the effects of inflation on the economy. As inflation rises, the value of currency diminishes, impacting the actual income of employees by reducing their purchasing power.

Dearness relief, on the other hand, is an additional amount provided to pensioners. An increase in dearness relief results in an augmentation of the monthly pension for pensioners.

DA is granted as a percentage of the basic pay, while DR is provided as a percentage of the pension amount. The central government typically revises these allowances twice a year, with revisions taking effect from January 1 and July 1. However, the official announcements are usually made around March and September.

Calculation Of DA Hike Under 7th Pay Commission:

The central government revised the formula for calculating DA and DR in 2006. The current approach involves determining the DA hike based on the percentage increase in the 12-month average of the All India Consumer Price Index (AICPI) until June 2022. DA is computed as a percentage of the basic salary.

Expected Beneficiaries:

If the 4 percent DA hike is confirmed, it is anticipated to benefit approximately 48.67 lakh central government employees and 67.95 lakh pensioners. The cumulative impact on the exchequer, considering both DA and DR, is projected to be Rs 12,857 crore annually.

As the government takes steps to address the economic dynamics influenced by inflation, the potential DA hike aims to provide relief to the affected workforce and pensioners alike.

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