DA hike: With DA at 53%, 2 allowances increased by 25% for central govt employees; check details

DA hike: The Dearness Allowance (DA) for central government employees currently stands at 53% of the basic salary following the July 2024 revision. According to the rule, when the DA exceeds the 50% mark of the basic pay, specific allowances are automatically adjusted. This regulation ensures that employees' additional expenses are taken into account amidst inflation and cost-of-living adjustments.

In January 2024, the Centre increased the DA and DR of employees and pensioners by 4% to reach 50% of the basic salary. Consequently, 13 important allowances saw an upward revision of 25%. Most recently, two additional allowances - the dress allowance and nursing allowance - have been revised for eligible employees. 

Dearness allowance is a remuneration adjustment provided by the Government to public sector workers and retirees to offset the impact of inflation. It is determined as a percentage of the base salary.

The Ministry of Health and Family Welfare (MoH&FW) recently increased the dress allowance and nursing allowance by 25% for eligible employees, aligning with the government's policy of adjusting certain allowances when DA exceeds the 50% threshold.

In compliance with the Office Memorandum entitled “Implementation of 25% increase in Dress Allowance consequent upon Dearness Allowance rises by 50%”, both dress and nursing allowances have been adjusted by 25%. This adjustment reflects the recent increase in Dearness Allowance to 50%.

Employees eligible for nursing allowance will receive the revised rates, in line with the 25% increase outlined in the memorandum. The objective of this adjustment is to provide support to nurses serving in central government hospitals and autonomous institutions under the Ministry of Health and Family Welfare.

All concerned institutions are instructed to promptly apply the revised rates and adhere to the guidelines specified in the August 2017 circular. It is essential for institutions to notify affected employees and ensure the timely disbursement of the updated allowances. Thank you for your cooperation in implementing these revisions.

DA hike

The basic pay of the 6th Central Pay Commission has seen an increase in DA to 246% from the previous rate of 239%, effective July 1, 2024. Similarly, the DA for the 5th Pay Commission has been raised to 455% from 443%, also applicable from July 1, 2024. Additionally, the DA for the 7th Central Pay Commission has been adjusted from 50% to 53%, with effect from July 1, 2024.

The Dearness Allowance (DA) is a crucial component of the remuneration system for over 10 million central government employees and pensioners. It serves as a protective measure against inflation by linking salary revisions to the Consumer Price Index (CPI). This ensures that employees' compensation is adjusted to reflect rising living expenses, offering financial security during periods of inflation.

The Centre increases the Dearness Allowance (DA) twice a year, with adjustments taking effect in January and July. Announcements regarding these adjustments are typically made in March and September, with the January DA hike usually announced around the time of Holi in March, and the July hike declared around Diwali in October or November each year.