Thu Oct 17 00:05:50 UTC 2024: ## Central Government Employees & Pensioners Get 3% DA Hike Ahead of Diwali
**New Delhi:** In a move likely to boost consumer spending ahead of the Diwali festivities, the central government has announced a 3% Dearness Allowance (DA) hike for all its employees and pensioners. This brings the total DA to 53% of the basic pay, up from the previous 50%.
The announcement comes after a significant delay, with the hike usually being announced around Diwali in September. This year, the announcement was expected before the Haryana elections on October 5th, but was delayed, prompting the Confederation of Central Government Employees and Workers to write to Finance Minister Nirmala Sitharaman.
DA is a cost-of-living adjustment calculated based on the All India Consumer Price Index (AICPI) and is intended to offset the effects of inflation. The government typically announces two DA hikes a year, in January and July, with the arrears paid out retrospectively.
Similar to the DA hike, the Dearness Relief (DR) for pensioners will also be increased accordingly. DR is the same pay adjustment as DA, but for retired government employees.
This latest DA hike comes on the heels of similar announcements by state governments. Himachal Pradesh recently gave its employees a 4% DA hike ahead of Dussehra, while Chhattisgarh’s Chief Minister announced a 4% hike for its employees, bringing their total DA to 50% of basic salary.
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