DA Hike Alert: Salaries to Rise by ₹10,000? Big Announcement for Employees Soon

There is a strong possibility of a salary hike in DA and DR. Central government employees may receive good news soon. Last year, DA was increased by 3% in October and 4% in March. If this trend continues, another increase is expected in the future. This means that central government employees who have been eagerly waiting for a salary hike may finally get relief this week.

What is Dearness Allowance (DA)?

Dearness Allowance (DA) is a part of the salary that helps employees manage inflation and the rising cost of living. Pensioners receive Dearness Relief (DR) to help them with similar challenges. These allowances are important because they directly impact the income of government employees and pensioners.

Eighth Pay Commission Approved

In January this year, the government approved the Eighth Pay Commission, which is expected to increase the salaries of central government employees. The commission will soon be formed with a chairperson and two members. It will discuss salary revisions and may also change how DA and DR are calculated. The cabinet is expected to discuss and approve the next DA and DR hike in a meeting this week.

The DA Hike Usually Happens Twice a Year

DA increases usually take place twice a year—once in March and again in October, just before Diwali. According to Roopa Sarkar, president of the Confederation of Central Government Employees and Workers, the DA hike this time is likely to be 2%.

Likely the Last DA Hike Before Eighth Pay Commission

This is expected to be the last DA increase before the Eighth Pay Commission starts its work. Employee unions have been demanding that DA and DR be merged with the basic salary before the new pay commission’s recommendations come into effect.

Salary Hike May Be Lower Than Expected

If the DA increases by 2%, it will reach 55% of the basic salary. This time, instead of the usual 3-4% hike, employees may only see a 2% increase, which is somewhat disappointing. However, this increase could add approximately ₹10,000 to employees’ monthly salaries, depending on their basic pay.