Central Government Employees Likely to Get 3% DA Hike Ahead of Diwali

Central government employees are expected to receive a 3% Dearness Allowance (DA) hike before Diwali, with three months' arrears. This delayed increase, calculated on the All India Consumer Price Index, will raise the DA to 53%, benefiting over one crore employees and pensioners.

In a boost to central government employees and pensioners, a 3% increase in Dearness Allowance (DA) is expected to be announced before Diwali, according to recent reports. The hike, delayed from its usual July timeline, will be retroactive, offering employees three months of arrears alongside their October pay. The current DA stands at 50% of the salary, which will rise to 53% post-hike. Over one crore employees and pensioners are set to benefit from this increase, aimed at offsetting the impact of inflation on their income.

Dearness Allowance, adjusted biannually in January and July, accounts for inflationary trends, with calculations based on the All India Consumer Price Index (AICPI). Typically announced around Holi and Diwali, this year's July hike was postponed, missing its expected announcement before the Haryana elections on October 5. Reports now suggest the DA hike could be announced shortly before Diwali, celebrated at the end of October.

This delay led the Confederation of Central Government Employees and Workers to appeal to Finance Minister Nirmala Sitharaman for timely relief. Additionally, it follows a 4% DA increase already granted by the Himachal Pradesh government to its state employees and pensioners.

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The DA hike, set to boost employees' income, is anticipated eagerly as inflationary pressures persist, and will offer significant financial relief during the festive season.