Employees in the central government are getting more and more excited about a significant increase in their dearness allowance that is expected to take place in the month of July 2024. The most recent update to the DA, which is made every two years to help workers in managing the impact of inflation, took place on January 1, 2024.
The DA Hike News represents the second adjustment for the year, announcing additional financial support during rising living costs. Through the article individual will get to know all the details regarding DA Hike News 2024, including its overview, latest news, implementation date and more.
DA Hike News 2024
The government increased the DA by 4% in January 2024, which makes it equal to 50% of the base salary. This modification is in line with the plan to reduce the impact of inflation on workers. During challenging times, it is hard to manage expenses for government employees, so the government has decided to announce an increase in DA of around 4 to 5%, which could bring total allowance up to 55 to 57% from 1st July 2024.
If the expected four to five percent growth occurs, the DA will increase to approximately 54 to 55 percent. It’s important to note that, with the announcement being scheduled in the month of July 2024, implementation might take place from the month of September, in keeping with previous years schedule with such adjustments.
Dearness Allowance Hike 2024 – Overview
| Department Name | Ministry of Finance |
| DA | Dearness Allowance |
| Year | 2024 |
| Expected Increase | 4 Percent |
| DA Increase Date | 31st July 2024 (Expected) |
| Category | Latest News |
| Official Website | https://doe.gov.in/ |
Amount of Dearness Allowance
The recent dearness allowance (DA) hike has positively impacted employees’ compensation. Previously, with a basic pay of 18,000 and a 50% DA of 9,000, the total was 27,000. After the merger, the basic pay has been revised to 27,000. A subsequent 4% DA increase, amounting to 1,080, brings the total to 28,080, effective from January 1, 2025.
This results in an overall basic pay increase of 9,000, offering a significant increase to employees’ earnings. According to this structure, the dearness allowance of different grade pay will be adjusted accordingly.
7th Pay Commission DA Hike News
The dearness allowance (DA) for central employees currently is at 50 percent, after a four percent increase earlier this year. The next update is scheduled for July 2024, according to the details provided in the DA Hike News 2024 PDF. The All India Consumer Price Index (AICPI) data, which are essential for calculating the DA adjustment, will determine how much of this increase occurs.
Based on these AICPI data, the exact change to the dearness allowance for central employees will be announced in the expected notification on July 31, 2024. The expected DA hike shows the government’s ongoing commitment to providing support to its employees in managing higher inflation rates and growing cost of living.
DA Hike News Latest Updates
- The All India Consumer Price Index determines the dearness allowance (DA), which provides inflation relief for central employees (AICPI).
- The AICPI index is the key factor in deciding the extent of DA adjustments.
- The Labour Bureau releases updated AICPI figures on the last working day of each month, with January’s data shown in February.
- The All India Consumer Price Index (AICPI) average of the previous 12 months is calculated as follows: [115.76×100 = 115.76)/115.76].
- This formula guarantees that changes in inflation trends are appropriately reflected in DA adjustments.
DA Hike Implementation Date
- Experts predict a 4% increase in the Dearness Allowance (DA) starting from July 2024.
- The All India Consumer Price Index for Industrial Workers (AICPI-IW) figures for July 2024 are not yet available.
- Based on current inflation trends, the government could increase the DA by up to 4%.
- By July 31, the final AICPI-IW index for July will be made public.
- The exact increase in DA for the second half of the year will be confirmed once the final index is published.
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Announcing about merger of 50% of DA with basic is the need of the hour.