DA Hike 2024: An Overview
The dearness allowance (DA) for central government employees and pensioners is set to increase, with estimates suggesting a 4% hike in July 2024. This will raise the total DA from 50% to 54%, expected to be announced in August or September.
DA Increase Estimate
Based on current projections, the anticipated 4% DA increase will impact the financial outlook of many government employees and pensioners. The DA, which was last increased by 4% in January 2024, reaching 50%, will see another rise based on the half-yearly data from the All India Consumer Price Index (AICPI).
Relation of AICPI Index and DA
The central government reviews the DA twice a year, in January and July, based on AICPI index data. The index figures from January to May 2024 are as follows:
- January. 138.9 points
- February 139.2 points
- March138.9 points
- April. 139.4 points
- May. 139.9 points
Current AICPI Index Status
These figures influence the calculation of DA. The consistent rise in the AICPI index supports the forecast of a DA increase to 54%.
Impact of 54% DA Increase
The impact of the 54% DA increase will vary based on the basic salary of the employees. Here is the expected benefit breakdown:
1. ₹18,000 Basic Salary Monthly Benefit ₹720, Annual Benefit ₹9,720
2. ₹50,000 Basic Salary Monthly Benefit ₹2,000, Annual Benefit ₹24,000
3. ₹1,00,000 Basic Salary Monthly Benefit ₹4,000, Annual Benefit ₹48,000
4. ₹1,50,000 Basic Salary Monthly Benefit ₹6,000, Annual Benefit ₹72,000
5. ₹2,00,000 Basic SalaryMonthly Benefit ₹8,000, Annual Benefit ₹96,000
Conclusion
The expected 4% DA increase before Rakshabandhan is good news for central government employees and pensioners, promising an increase in their monthly and annual benefits. This adjustment reflects the government’s commitment to mitigating the effects of inflation and supporting the financial well-being of its employees.
