Central employees and pensioners are set to receive good news as the government is expected to announce a significant hike in the Dearness Allowance (DA). The Modi government is likely to raise DA for both employees and pensioners, providing a major financial boost to more than one crore individuals. If announced, the DA hike will be effective from July 1, coinciding with the monsoon season, resulting in a noticeable increase in salaries. The central government’s cabinet meeting on September 25 could see this major decision regarding the DA hike, although earlier, the government had refused to provide DA arrears.
Cabinet Meeting on September 25
The central government is expected to declare the DA hike soon, with an estimated increase of 4 percent, bringing DA up to 54 percent from the current 50 percent. The upcoming cabinet meeting on September 25 is anticipated to approve this hike, providing a significant financial benefit. For example, if an employee’s salary is Rs 60,000, a 4 percent DA increase would mean an additional Rs 2,400.
Also Read: Steer Clear of These Credit Card Mistakes to Improve Your Finances
As reported by The Economic Times, the government typically raises DA twice a year, with increases effective from January 1 and July 1. This latest hike will follow the same pattern, with rates taking effect from July 1.
Current Status of Dearness Allowance
Previously, DA saw a 4 percent increase, bringing it to 50 percent. The government announces DA increases every six months, and the last hike occurred in March 2024. Now, all employees and pensioners are eagerly awaiting the next DA announcement, which could be revealed in the upcoming cabinet meeting on September 25.