Dearness Allowance Soars as Government Greenlights 4% Surge for Employees

Dearness Allowance(DA) Hike: The Indian government, led by Prime Minister Narendra Modi, has approved a 4% increase in Dearness Allowance (DA) for central government employees, bringing it to 50% of Basic Pay.

Effective from January 1, 2024, this adjustment aims to offset the impact of rising prices. The additional financial burden on the exchequer, including Dearness Relief for pensioners, is Rs.12,868.72 crore annually.

Not Only Dearness Allowance Others Too

The government has also raised various allowances, such as transport, canteen, and deputation, by 25%, while House Rent Allowance sees an increase from 27% to 30%. Gratuity benefits have been raised by 25%, with a new ceiling of ₹25 lakh.

This decision will benefit around 49.18 lakh government employees and 67.95 lakh pensioners, aligning with the 7th Central Pay Commission’s recommendations. The annual impact on the exchequer due to increased allowances is estimated at ₹9,400 crore.

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