DA Hike: Diwali gift to central employees, government increased DA by 4 percent

7th Pay Commission: The Union Cabinet has given a big gift to government employees even before Diwali. Dearness allowance has been increased by up to 4 percent.

DA Hike: Diwali gift to central employees, government increased DA by 4 percent

The Union Cabinet has approved increasing the Dearness Allowance (DA) of Central Government employees by 4 percent. With this, the DA will now increase from 34 percent to 38 percent. This increase will benefit more than 50 lakh central government employees and 62 lakh pensioners. The Union Cabinet had earlier increased the DA by up to 3 percent in March under the Seventh Pay Commission.

In fact, today a meeting of the Union Cabinet was held under the leadership of PM Modi, in which the increase in the dearness-related allowance for government employees up to 4 percent was approved. During this, the government also approved the proposal to extend the scheme of free rations for the poor for three more months.

Due to a 4 percent increase in DA by the government, the total dearness allowance has gone up to 38 percent. This means that if the basic salary of an employee is Rs 56,900, then he will get a DA of Rs 21,622. At present, it is getting Rs 19,346 at the rate of 34 percent. An increase of 4 percent would increase the DA by Rs 2,276 to Rs 19,346, increasing the total amount annually to around Rs 27,312.

If someone's basic salary is Rs 18,000, then he gets Rs 6120 per month at the rate of 34%. According to 38 percent, now this amount will become Rs 6840. This means that the monthly salary will increase by Rs 6840- 6120 = Rs 720 per month while the increase in annual salary will be Rs 720X12 = Rs 8640.

Dearness allowance is a part of any salary and it is a fixed percentage of the basic salary of the employee, on the basis of which the employee gets DA. To reduce the effect of inflation in the country, the government gives dearness allowance to its employees, which is increased from time to time.

The DA hike will benefit about 52 lakh central government employees and 65 lakh pensioners. In March, the central government had increased the dearness allowance by 3 percent, due to which the total dearness allowance had increased to 34 percent and now it has increased by 4 percent to 38 percent.