Centre Raises Dearness Allowance (DA) of Government Employees by 4%

The Centre has announced a 4% increase in the Dearness Allowance (DA) of government employees, raising it to 50% of the Basic Pay/Pension. Prime Minister Narendra Modi chaired the union cabinet meeting that approved the additional instalment of DA, effective from January 1, 2024, in a bid to offset the impact of rising prices.

The decision, aimed at compensating for the cost of living, will benefit approximately 49.18 lakh central government employees and 67.95 lakh pensioners. The combined financial impact, including both Dearness Allowance and Dearness Relief, amounts to Rs. 12,868.72 crore annually.

Additionally, the government has increased various allowances to provide further relief to employees. Transport allowance, canteen allowance, and deputation allowance have been raised by 25%, while House Rent Allowance (HRA) sees an increase from 27% to 30% of basic pay.

Furthermore, benefits under gratuity have been enhanced by 25%, with the ceiling raised to ₹25 lakh from the existing ₹20 lakh. The decision reflects the government’s commitment to align with the recommendations of the 7th Central Pay Commission.

The announcement comes amidst efforts to address the financial concerns of government employees and pensioners, underscoring the government’s commitment to their welfare amidst economic challenges.

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