Centre hikes Dearness Allowance to govt employees and Dearness Relief to pensioners by 4%
The Union Cabinet on Thursday approved a 4 per cent hike in dearness allowance (DA) to 50 per cent of the basic pay. The 4% DA hike, which will benefit over one crore central government employees and pensioners, will become effective from January 1, 2024.
FollowIn good news for central government employees and pensioners, the Narendra Modi administration has revised the dearness allowance (DA) and dearness relief (DR) ahead of the Holi festival. This decision, approved during a recent cabinet meeting chaired by Prime Minister Narendra Modi, marks a substantial increase from the existing 46 per cent to 50 per cent, effective from January 1 to June 30, 2024.
The decision, finalized on Thursday, March 7, 2024, comes as welcome news to approximately 49 lakh central government employees and nearly 68 lakh pensioners across the country. The hike in DA and DR will be reflected in the salaries and pensions for the month of March, with additional arrears from the previous two months anticipated to be disbursed alongside.
Furthermore, the upward adjustment in dearness relief for government pensioners, from the earlier 46 per cent to the current 50 per cent, is set to provide financial relief to the pensioner community, comprising 68 lakh individuals. This increase is expected to alleviate the economic burden faced by pensioners amidst rising living costs.
The implementation of this decision translates into tangible financial gains for government employees and pensioners. For instance, a central government employee with a current monthly salary of Rs 50,000, previously receiving DA at 46 per cent, will now see their monthly DA rise to Rs 25,000, resulting in an annual increase of Rs 24,000.
Similarly, an employee with a monthly basic pay of Rs 1 lakh, previously receiving DA of Rs 46,000, will now witness an increase to Rs 50,000, thereby enjoying an additional monthly salary of Rs 4,000. This translates to an annual benefit of Rs 48,000, providing much-needed relief amid economic challenges.
While the current increase in DA and DR covers the period from January to June 2024, it is anticipated that the new government, following the Lok Sabha elections, will reassess and revise the DA and DR for the subsequent period from July to December.
What about other announcements?
The Cabinet has also approved the continuation of the Rs 300 subsidy to PM Ujjwala Yojana consumers till March 31, 2025. The total expenditure for this will be Rs 12,000 crores, Union Minister Piyush Goyal informed.
He also announced that the Minimum Support Price (MSP) for Raw Jute for the 2024–25 season has been approved by the Cabinet at Rs 5,335 per quintal, an increase of Rs 285 per quintal over the previous season. A comprehensive national-level IndiaAI mission with a budget over Rs 10,000 crores was also approved by the government. The Union Minister said, "The Cabinet approved a Rs 10,237 crore scheme to promote industrialization in the Northeast region in addition to the above decisions."
