The central government plans to increase the Dearness Allowance (DA) for the first time in September 2024 by 4%. This is going to increase the current DA to 54 percent from 50 percent now based on the March averages. These are the important details that you should know on this particular adjustment that will happen soon.
What is Dearness Allowance?
Dearness Allowance or DA is a part of central establishments’ remuneration policy to neutralize inflation. It is expressed in relation to the basic pay and is usually reviewed from time to time in tune to inflationary factors.
Upcoming DA Increase
Last month the central government has released a new 4% DA which is effective from the September 2024. This increase will slightly affect the DA, which at present is 50%, and bring it to 54%. To address the issue of the ever increasing cost of living the increase is expected to help the employees.
Impact on Salaries
By this, the employees will be able to receive larger amounts of money per month since the increase is 4% of the monthly salaries. The DA will be different based on this from September, and the remaining amounts for the previous adjustment will be paid later.
Key Takeaways
- Current DA: 50%
- New DA: 54%
- Effective Date: September 2024
This is indeed a favorable move on the part of the government to increase the DA as they are now able to handle the steep rates of inflation much better than before.
