The Centre has increased the Dearness Allowance (DA) for certain central government employees whose salaries follow the 5th, 6th, and 7th Pay Commissions, according to a November 7, 2024, notice from the Finance Ministry's Department of Public Enterprises, reported by The Economic Times.
Under the revised rates, DA for employees under the 6th Pay Commission has been raised from 239% to 246% of basic pay, effective July 1, 2024. For those under the 5th Pay Commission, DA is now 455%, up from 443%. Employees following the 7th Pay Commission will see an increase from 50% to 53%.
This change means employees will receive arrears for the increased DA from July 1, 2024. DA is calculated as a percentage of basic pay, adjusting salaries to offset inflation.
For example, under the 6th Pay Commission, an employee with a basic pay of Rs 43,000 per month would now receive Rs 1,05,780 in DA, compared to Rs 1,02,770 before the hike.
DA adjustments are made twice a year, in January and July, and they vary by pay commission level and work location (urban, semi-urban, or rural).
Dearness Allowance is a critical part of government employees' and pensioners' earnings, helping to balance rising living costs and providing financial relief in times of inflation.
