The Union Cabinet’s recent announcement of a 3% hike in Dearness Allowance (DA) for central government employees and pensioners, raising it from 42% to 45%, will come into effect from July 1, 2024. This increase provides a significant financial boost ahead of the festive season, especially with Diwali approaching, offering relief to employees and retirees amid rising inflation and living costs.
Dearness Allowance is a salary component designed to help employees cope with inflation. It is calculated based on the All India Consumer Price Index (AICPI) and is periodically adjusted to reflect changes in the cost of living. This increase is seen as a timely measure to support households during the festive season while countering inflationary pressures.
