Central Government News: In the cabinet meeting chaired by Prime Minister Narendra Modi, big good news has come out for the central employees. The government has given the gift of 2% increase in Dearness Allowance (DA) to the employees. The DA hike was announced by the Modi government in the month of March. In such a situation, the arrears of two months will also be added together and given with the salary of March.
Gift of 2 percent increase
This time the government has increased the DA by 2%. After this increase, the dearness allowance of government employees has increased from 53% to 55%. This increase has been done on the basis of the data of July-December 2024 of All India Consumer Price Index (CPI). Let us tell you that the new rates of dearness allowance are applicable for January to June half year and then July to December half year.
The benefit of dearness allowance announced by the government is available only to government employees and those working in public sector undertakings i.e. government companies. People working in the private sector do not get the benefit.
What is DA?
Dearness Allowance (DA) is an amount given to government employees, which is given to adjust their basic salary according to rising inflation. The basic salary is decided in the Pay Commission after every 10 years, but DA ensures an increase in the salary of employees from time to time.
Yes, that’s correct! Dearness Allowance (DA) is a cost-of-living adjustment given to government employees to offset the impact of inflation on their basic salary. While the basic salary is reviewed and decided by the Pay Commission every 10 years, DA is revised periodically (usually every six months) to account for changes in inflation, thereby ensuring that employees’ purchasing power doesn’t decrease over time.
The amount of DA is typically calculated as a percentage of the basic salary and is adjusted based on the Consumer Price Index (CPI), which tracks inflation. This adjustment helps employees maintain a stable standard of living despite rising costs.