DA Hike Notification 2024: Expected Increase in Dearness Allowance
In 2024, central government employees can anticipate an increase in their Dearness Allowance (DA). After a 4% raise effective from January 1st, another raise is expected from July 1st. Due to high inflation, the increase could range from 4% to 5%, potentially raising the DA from 50% to 55%, helping employees manage the rising costs of living.
Impact on Basic Pay
For example, if an employee’s basic salary is ₹18,000 and the DA is 50%, they receive ₹9,000 as DA. With the new hike, if the DA increases to 55%, the DA amount will be ₹9,900, bringing the total salary to ₹27,900.
Recommendations of ACC and Implications for the 7th Pay Commission
The DA hike is linked to the 7th Pay Commission‘s payroll guidelines. While the exact increase is based on the Consumer Price Index (CPI), the anticipated rise will help employees manage their finances amid economic changes. The official DA increase rates will be announced before the end of July, with the increase typically starting from the third quarter.
Latest Updates
The DA adjustments are based on the All-India Consumer Price Index (AICPI), which is updated monthly. The July 2024 data, expected by the end of the month, will confirm the higher DA, ensuring that employees’ purchasing power is maintained.
Stay tuned for further updates as the government releases official notifications regarding the DA hike.
