Anticipated 4% increase in Dearness Allowance brings Cheers for Central Government Employees Ahead of Lok Sabha Elections

As the Lok Sabha elections draw near, the Modi government has announced a significant decision aimed at garnering support from various sections of society, particularly central government employees. 

In a move to bring joy to government job holders, there are indications that the central government may announce a 4% increase in Dearness Allowance (DA) for employees working under its institutions and services. If implemented, this will raise both Dearness Allowance and Dearness Relief to 50%, up from the current 46%.

The decision is based on the average of the Consumer Price Index for Industrial Workers (CPI-IW) over the last 12 months, which stands at 392.83. With this increase, the DA is expected to reach 50.2%. DA and Dearness Relief are revised twice a year, in January and July. 

Currently, more than 1 crore government employees benefit from Dearness Allowance under the Seventh Pay Commission.

The timing of the increase is noteworthy, as it is likely to be implemented from March 2024, just before the upcoming elections. 

The impact of the rise in DA extends to employees’ Take Home Salary, with a potential increase of around Rs 2140 for an individual with a salary of Rs 53,500.

Key Points:

• Central government employees may witness a 4% increase in Dearness Allowance.
• The rise will elevate Dearness Allowance and Dearness Relief to 50%.
• The decision is expected to be effective from March 2024.
• The increase in DA will positively impact the Take Home Salary of employees.