The wait for central employees is finally over. For a long time, there was speculation that the government might decide on the dearness allowance for central employees. Now, the dearness allowance has been increased to 55%. Earlier, employees were receiving a 53% dearness allowance.
The government last increased the dearness allowance in July 2024, raising it from 50% to 53%. This latest hike will benefit more than 1 crore central employees. Central government employees had been demanding a 3% increase in dearness allowance for a long time. However, it was already expected that the hike would be around 2%.
Union Railway Minister Announces DA Hike
Union Railway Minister Ashwini Vaishnav has confirmed that the dearness allowance for central employees has been increased by 2%. He also mentioned that this increase will be reflected in their salaries starting from January 1.
How Much Has the Dearness Allowance Increased?
According to government figures, the dearness allowance is usually increased by 3 to 4 percent. In the past, the government had raised it by 3%. However, this time, the dearness allowance has been increased by only 2%.
A Time When No Dearness Allowance Was Given
During the COVID-19 pandemic, the government stopped the dearness allowance for all employees. Central employees did not receive any dearness allowance for 18 months, from January 2020 to June 2021.
Employees have been requesting the arrears for this period for a long time. The government increases dearness allowance twice a year – once for the period from January to June and again for July to December.
What is Dearness Allowance?
Along with their salary, government employees receive several allowances, one of which is a dearness allowance. This allowance is provided to employees to help counter the rising inflation, ensuring that their purchasing power is not affected by it.