New Delhi, 16th October 2024: The central government has increased the dearness allowance (DA) and dearness relief (DR) for its more than one crore employees and pensioners by 3% to help them cope with rising prices. This adjustment raises the total from 50% to 53%, calculated on top of the basic salary. The decision to raise the DA was made during a cabinet meeting led by Prime Minister Narendra Modi this morning.
The new rate will take effect from July 1, 2024. Announced just weeks before Diwali, this move is seen as a significant relief for central government employees during the festive period.
“This adjustment follows the established formula based on the 7th Central Pay Commission’s recommendations,” the government stated.
The increase in DA and DR is expected to cost the government an additional ₹9,448.35 crore annually, benefiting approximately 49.18 lakh central government employees and 64.89 lakh pensioners. DA is provided to government employees, while DR is given to pensioners to offset rising living costs. This allowance is revised biannually and is calculated based on the current consumer price index for industrial workers.