7th Pay Commission DA Hike: Another good news is going to come for central employees in September 2024. After the Unified Pension Scheme (UPS), this month the central government employees are also going to get the benefit of increase in dearness allowance (DA). It is expected that the government may announce a 3-4 percent DA hike in the third week of September.
3-4 percent increase expected in DA
The government will increase the dearness allowance (DA) by 3-4 percent in the third week of September. The increase of 3 percent has been confirmed, but it can also be 4 percent. According to sources, earlier in March 2024, the government had increased the DA by 4 percent to 50 percent of the basic pay. Along with this, dearness relief (DR) for pensioners was also increased by 4 percent. Dearness Allowance (DA) is given to central employees, while Dearness Relief (DR) is for pensioners. DA and DR are increased twice a year in January and July.
Will central employees also get COVID-19 DA arrears?
In the recent Monsoon Session of Parliament, Minister of State for Finance Pankaj Chaudhary informed that the government is unlikely to release 18 months of DA and DR arrears frozen during the COVID-19 pandemic. In response to a question whether the government is considering releasing 18 months of dearness allowance or DR for central employees and pensioners. The decision to freeze three installments of DA/DR for central employees and pensioners from January 2020, July 2020, and January 2021 was taken to reduce the pressure on government finances due to economic troubles during the COVID-19 pandemic.
Will more than 50% of DA be merged into basic pay?
According to experts, in case the DA is more than 50 percent, it will not be merged into the basic pay. However, other allowances like house rent allowance etc. have been increased. Various organizations of central employees have demanded the formation of a pay commission. However, the government currently has no proposal to form the 8th Pay Commission.
