There is a big good news regarding the Dearness Allowance of more than one crore central employees and pensioners of the country. The half-yearly data of the All India Consumer Price Index (AICPI) released by the Ministry of Labor from January to June 2024 has come out. According to these figures, the AICPI index has increased by 1.5 points to 141.4 in June 2024.
This will have a direct impact on Dearness Allowance (DA) and Dearness Relief (DR), which is likely to increase by 3%. The formal announcement of this increase will be made in the Cabinet meeting to be held in September 2024. The new rates will be applicable from July 2024, due to which the employees will also get the arrears of July and August.
Dearness Allowance (DA) increased by 3%, 2 months’ arrears will also be available
The DA/DR rates of central employees and pensioners are revised twice every year, in January and July, based on the half-yearly data of the AICPI index.
After a 4% increase in January 2024, the DA had increased from 46% to 50%. Now, as per the AICPI index data from January to June 2024, DA will be increased by another 3%, taking the rate to 53%. Along with this increase, employees will also get 2 months’ arrears for July and August 2024.
How much will the salary increase after DA increase?
At present, the dearness allowance of central employees is 50%, which will now be increased to 53% with an increase of 3%. This increase will have a direct impact on the salary of the employees.
For example, if an employee’s basic salary is Rs 18,000, then at the rate of 53% dearness allowance, he will get an additional benefit of about Rs 540 every month. Similarly, if an employee’s basic salary is Rs 52,000, he will get an additional benefit of Rs 1,560 every month. In this way, the annual income of the employees will also increase significantly.
DA increase From 50% to 53%, increase in salary and pension, 2 month arrear pic.twitter.com/TlqJVPXhxK
— Govt Staff News (@StaffGovt65501) August 14, 2024
DA Calculation Formula: How is Dearness Allowance decided?
The dearness allowance of central government employees and pensioners is calculated on the basis of a fixed formula. The increase in DA is calculated on the basis of All India Consumer Price Index (AICPI). AICPI index data is released every month. DA rates are fixed on the basis of these figures.
Effect of DA increase on employees and pensioners
This increase in DA will have a direct impact on the lives of central employees and pensioners. In this era of inflation, this increase will help them manage their daily expenses better. Also, the payment of 2 months’ arrears will also strengthen their financial position. This is a positive step for the employees, which will work to improve their financial condition.
Announcement will be made in the upcoming cabinet meeting
This increase in the rates of DA and DR will be formally announced in the cabinet meeting to be held in September 2024. This increase will be applicable from July 2024, and employees will also get the benefit of arrears for July and August 2024. This decision was awaited by the central employees and pensioners for a long time, and now this decision will bring relief to them.
In this way, this move of the central government will provide a significant financial support to the employees and pensioners, which will improve their lifestyle and provide some relief from the effects of inflation
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