DA hike likely to be taken up today, Oct 3, at special cabinet meeting

News expired. DA was not taken up at the meeting

The long wait for the dearness allowance (DA) hike for central government employees is likely to end today, October 3. Reports suggest that the Union Cabinet will announce its decision during a special meeting scheduled for that day.

Central government employees have eagerly awaited the DA hike, which is usually announced by the end of September. However, the announcement got delayed this year, and we are already into October.

Due to the delay, the Confederation of Central Government Employees and Workers recently wrote a letter to Finance Minister Nirmala Sitharaman. In the letter, they reminded the government that the DA hike is generally announced in the last week of September, and salaries and pensions, along with arrears for three months (July-September), are paid in the first week of October.

The Confederation also mentioned that the delay has caused dissatisfaction among employees and pensioners. DA is given to working government employees, while pensioners receive Dearness Relief (DR).

They also requested the government consider the performance-linked and ad-hoc bonuses, typically paid to employees around the Durga Puja festival.

Current DA and Expected Hike As of now, the DA stands at 50% of the basic salary, following a 4% hike announced in March, effective from January 2024. There were rumours that the government might merge the DA into the basic pay and restart DA from 0%, but the government has denied this.

For the period from July to December 2024, employees can likely expect a 3% increase in DA. The hike is usually based on the All India Consumer Price Index (AICPI), based on the retail price changes across different sectors.

All eyes are now on today’s announcement, which could bring some relief to central government employees and pensioners.