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DA Increment : The government typically reviews the dearness allowance (DA) of central government employees twice a year, deciding on a DA increase. Just before Diwali, the government has given its employees a significant gift.
On Wednesday, the Union Cabinet, chaired by Prime Minister Modi, approved a proposal to increase the dearness allowance (DA) for central government employees and pensioners by 3% to 58%. This is a significant step taken by the government before Diwali. According to reports, this increased dearness allowance will be effective from July 1. In other words, the government has given a gift to millions of employees before Diwali. It is common for the government to announce an increase in dearness allowance around the festival season. This increase will benefit employees and pensioners.
When was DA increased before?
The government previously increased dearness allowance (DA) and dearness relief (DR) by 2% from January 1, 2025, benefiting approximately 11.5 million central government employees and pensioners. Following this increase, dearness allowance increased from 53% to 55% of the basic salary.
Applicable to family pensioners as well
According to reports, this increase will apply to all central government employees covered under the 7th Pay Commission, as well as pensioners and family pensioners. For example, an employee with a basic salary of ₹30,000 will receive an additional ₹900 per month, while an employee with a salary of ₹40,000 will receive an additional ₹1,200. Over three months, the arrears will total ₹2,700 to ₹3,600, providing relief during the festive season.
The Odisha government recently announced a DA increase.
It’s worth noting that the Odisha government recently made a major announcement aimed at providing financial relief to state public sector undertaking (PSU) employees. Just before Diwali, Odisha Chief Minister Mohan Charan Majhi approved a 2 percent increase in dearness allowance (DA) for PSU employees. This latest increase will increase the total dearness allowance (DA) received by Odisha PSU employees from 53% to 55%, effective January 1, 2025.
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