DA hike News: Central Government Increases Dearness Allowance By 4%, Check Details
Government’s Decision: On March 7, the Union Cabinet, led by Prime Minister Narendra Modi, made a significant decision to enhance the dearness allowance (DA) for Central government employees by 4 percentage points.
Magnitude of Increase: With this decision, the dearness allowance for Central government employees is set to rise to 50 percent, reflecting the government’s effort to address the cost of living for its workforce.
Effective Date: The increased DA is scheduled to be implemented from January 1, 2024, providing relief to employees grappling with inflationary pressures.
Previous Increment: This move follows a similar increase in October 2023 when the government raised the dearness allowance and dearness relief by 4 percentage points to 46 percent, effective from July 1, 2023.
Beneficiaries: The previous increase aimed to benefit a substantial number of individuals, including 48.67 lakh Central government employees and 67.95 lakh pensioners, reflecting the wide-reaching impact of such policies.
Financial Impact: The cumulative financial implication of the earlier hike in dearness relief and dearness allowance was estimated at Rs 12,857 crore annually, underlining the government’s commitment to support its employees during periods of economic fluctuations.
Overall Implications: These incremental adjustments in dearness allowance signify the government’s responsiveness to the evolving economic landscape and its commitment to safeguard the financial well-being of its workforce amidst changing cost-of-living dynamics.
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