Wed Oct 16 09:42:26 UTC 2024: ## Indian Government to Increase Dearness Allowance by 3%, Benefiting Millions of Employees
**New Delhi:** The Indian government is set to announce an increase in the Dearness Allowance (DA) for central government employees under the 7th Pay Commission. According to media reports, the Union Cabinet has approved a 3% hike in the DA, which will bring the total DA to 53% of the basic salary.
This DA hike is expected to benefit over 68 lakh central government employees and approximately 42 lakh pensioners. The increase is expected to be effective from July 2023, with employees receiving a 3-month arrears along with their revised salary.
The Dearness Allowance is a cost of living adjustment that aims to help employees maintain their standard of living amid rising inflation. The government reviews the DA twice a year, in January and July, based on the All-India Consumer Price Index (AICPI).
This move will result in a substantial increase in the salaries of government employees. For example, an employee earning a basic salary of ₹18,000 will see their DA rise from ₹9,000 to ₹9,540.
The official announcement regarding the DA hike is awaited.
First Piper 