7th Pay Commission: DA Hike and Arrears, Government Increases DA by 4 Percent, Reaching 50%

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The Modi government has announced a significant increase in Dearness Allowance (DA) for central government employees. This update comes as a welcome relief amidst rising inflation.

  • DA increased by 4%, reaching 50% of basic salary.
  • Previously, DA stood at 46%.
  • Applies to both Dearness Allowance (DA) and Dearness Relief (DR) for pensioners.
  • Effective from January 1, 2024.

Twice-Yearly DA Adjustments and Rationale

DA and DR are reviewed twice annually, in January and July.

The Central Government determines the increase based on the Consumer Price Index for Industrial Workers (CPI-IW) data.

The current average CPI-IW points towards a DA of 50.26%, justifying the 4% hike.

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Benefitting 1 Crore Employees and Pensioners

This decision will positively impact 1 crore central government employees and pensioners across the country.

2 Months DA Arrears to Be Paid

The DA hike is effective from January 1st, 2024, resulting in arrears for January and February.
March salaries will reflect the increased DA for three months, leading to a significant boost for employees on the last working day of the financial year, March 31st.

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