DA Hike News: The central government has announced a 3% Dearness Allowance (DA) hike, offering a Diwali gift to its employees. This increase boosts the DA to 53%, bringing welcome relief amid rising living costs. This is the second DA hike of 2024, with the first occurring in March when DA was raised by 4%, taking it from 46% to 50%.
Impact of the DA Hike on Salaries
The new 3% hike will be effective from July 1, 2024, meaning employees will also receive arrears for three months (July, August, and September). For example, an employee with a basic salary of ₹55,200 will see their DA increase from ₹27,600 (50%) to ₹29,256 (53%), resulting in a salary boost of ₹1,656.
This hike is especially significant as it provides employees with a financial boost just in time for Diwali, ensuring a brighter festive season. (DA News Today)
Calculation Example:
- Basic Salary: ₹55,200
- Previous DA (50%): ₹27,600
- New DA (53%): ₹29,256
- Salary Increase: ₹1,656
Importance of DA and the AICPI
The DA is calculated based on the All India Consumer Price Index (AICPI), which tracks retail inflation over the past 12 months. The DA hike is crucial as it helps employees manage inflationary pressures on household expenses. This decision by the Modi government is seen as a move to ease the financial burden faced by employees due to global inflation and rising living costs.
MSP Increase for Farmers: A Festive Bonus
In addition to the DA hike, the government has also raised the Minimum Support Price (MSP) for certain Rabi crops. Wheat’s MSP has been increased by ₹150 per quintal, now set at ₹2,425, while mustard’s MSP has been raised by ₹300 to ₹5,950 per quintal. The MSP for gram has also been increased by ₹210, bringing it to ₹5,650 per quintal.
This decision is seen as a significant step to support farmers, ensuring that they receive fair prices for their crops during the upcoming marketing season.
