As the season of festivities ushers into the realm of the Indian Subcontinent, central government employees may get an additional cushion of comfort this season. As per various media reports, the union government is expected to increase the Dearness Allowance for Central Government Employees. And this supposed hike is expected to be brought about this month (October).
How Big Is This Hike?
As per various reports from different publications, this hike could be in the range of 3–4 per cent. These hikes usually come to pass towards the end of the year, alongside the myriad festivities on the horizon. In 2023, there was a similar hike that was also announced in October of 2023. In addition, these hikes are sometimes also announced in January and March.
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What Is A Dearness Allowance?
Dearness Allowance, or DA, is essentially a fiscal bulwark. DA, therefore, is a percentage or tranche of the basic salary paid to government employees to cover for the impact of inflationary activities in the economy. This allows employees to offset the effects of inflation and sustain cost of living. These changes or upgrades are conducted periodically as per the requirements of the time in question.
What Does This Hike In DA Amount To?
To give an example of the said hike, if a central government employee earns a salary of Rs 50,000 a month, then their basic salary is Rs 30,000. In this case, half of this salary would be pegged at Rs 15,000. The dearness allowance for that employee is at Rs 15,000.
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The 7th Pay Commission
The 7th Central Pay Commission established in February 2014 the principles and structure of emoluments for all central government civilian employees. In September of 2016, the PM Modi-led government implemented the suggested changes. In 2018, the presidential ascent was acquired for increasing the monthly salary of the Chief Justice of India (CJI), along with a rise in the salary of other judges of the Apex Court and the 25 High Courts.