Central Government Employees to Benefit as DA Hiked; Further Salary Boosts on the Horizon

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Central Government Employees News: In a significant update for central government employees, the Dearness Allowance (DA) has been increased for those drawing salaries under the 5th, 6th, and 7th Pay Commissions, according to a memorandum from the Department of Public Enterprises under the Finance Ministry. This revised DA rate is effective from July 1, 2024, and will come with arrears from that date, The Economic Times reported.

New DA Rates Effective from July 1, 2024

  • For employees under the 7th Pay Commission, the DA has been raised from 50% to 53%.
  • Under the 6th Pay Commission, the DA has increased from 239% to 246%.
  • For those following the 5th Pay Commission, the DA has been boosted from 443% to 455%.

This increase is part of the government’s effort to offset inflation and help employees manage the rising cost of living. Dearness Allowance is a crucial component of central government salaries, calculated as a percentage of basic pay and adjusted biannually. This adjustment helps ensure employees’ earnings maintain their real value amidst inflationary pressures.

Potential Salary Boost on the Horizon

Adding to the excitement, there may be another significant announcement soon. Reports suggest that the government is contemplating merging the current DA rate of 53% with the basic pay for central employees. Union Minister Ashwini Vaishnaw confirmed discussions on this proposal but clarified that a final decision is yet to be taken. If implemented, this move would permanently raise the basic salaries, impacting pensions, allowances, and bonuses.

Previously, under the 6th Pay Commission, DA was merged with basic pay when it hit 50%, a practice that could be revived under the current framework. Such a step would result in a substantial, lasting increase in overall compensation for government employees. The anticipation surrounding this decision adds to the significance of the recent DA hike.

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