Centre is expected to make a proclamation regarding a 3 percent hike in dearness allowance next month. This increase will push total dearness allowance to 53 percent. The increase in dearness allowance of central employees may come in the month of September next. With the September increase, the two months’ arrears of July and August will also be paid to the salary.
DA and DR increase by 3 percent
There are expectations that a 3-percent DA and DR hike will likely be announced in September 2024, with effect from July 1, 2024. In light of this increase, the DA will reach 53 percent. Though the DA has increased beyond 50 percent, it will not be merged with the basic pay. Further, other allowances like HRA will be increased when DA exceeds 50 percent. The government had increased HRA when the DA increased to 50 percent in March.
DA arrears to be available
DA is given to government employees and DR is given to pensioners. DA and DR are announced twice a year-in January and July. In March 2024, the government increased the DA by 4 percent, thereby pegging it at 50 percent of the basic pay. The dearness relief has also been increased by 4 percent.
Will we ever get our DA due for 18 months?
Unfortunately, the government is not expected to pay DA for 18 months pending dearness allowance and dearness relief due to the COVID-19 pandemic. Recently, during the Monsoon Session of Parliament, two members questioned the government on DA arrears. The queries include whether the government is thinking of releasing 18 months DA or relief of central government employees and pensioners withheld in the COVID-19.
Minister of State for Finance Pankaj Chaudhary replied negatively to this question. He stated that three installments of DA and DR were stopped to ease the financial burden during the pandemic. In 2020, considering that it would not be appropriate to release DA and DR arrears due to the economic crisis caused by the pandemic and the need for funds for the measures by the government, it was not granted for the year.