The Central Government, under Prime Minister Narendra Modi, has announced a 3% hike in Dearness Allowance (DA) for its employees and pensioners. This increase, aimed at mitigating the impact of inflation, comes as a festive bonus around Diwali. The latest revision takes the DA from 50% to 53%, providing financial relief to lakhs of beneficiaries. Additionally, there is speculation that the government might soon merge this DA with the basic salary.
DA Hike: From 50% to 53%
In light of rising inflation, the government has increased DA for central employees and pensioners by 3%, taking it to 53%. This hike, effective from July 1, 2024, aims to improve the economic well-being of employees and retirees. Reports suggest that the government is considering merging this increased DA with the basic salary—a move that could have significant implications on future pay structure and benefits.
Key Highlights of the DA Revision
| Details | Information |
|---|---|
| Previous DA | 50% |
| Current DA | 53% |
| Effective Date | July 1, 2024 |
| Next Expected Hike | March 2025 (Holi Season) |
| Possibility of Merger | Under Discussion |
Discussion on Merging DA with Basic Salary
According to reports, there are ongoing discussions about merging Dearness Allowance (DA) and Dearness Relief (DR) with the basic salary. This move, if implemented, could take place before the next DA revision, expected in January 2025. However, the government has yet to officially confirm these plans. It’s worth noting that past government policies allow for such a merger when DA exceeds 50%, but there’s no immediate indication of a formal decision.
Next DA Hike Timeline
The latest DA hike is effective from July 2024, with the next adjustment expected around Holi 2025. Experts suggest that while the recent 3% increase is significant, further hikes and a potential merger of DA with basic pay may not happen immediately. These revisions are likely to be reviewed during the next 7th Pay Commission updates in 2025.
Disclaimer
This update on the 7th Pay Commission has been sourced from online reports. While we strive to provide accurate information, we recommend readers verify details from official government announcements.
Also Read> Solar Rooftop Subsidy Yojana: Transforming Residential Energy with Solar Power
