Central government employees are likely to get a huge Diwali bonus as the government is expected to announce a 3% Dearness Allowance (DA) hike. According to earlier reports, the Central government may make the raise public after the October 9 Union Cabinet meeting. It has recently been suggested, though, that the formal announcement would be made closer to the Diwali festivities.
The All India Consumer Price Index (AICPI), which monitors changes in retail prices and is updated twice a year, serves as the basis for calculating Dearness Allowance (DA). Government workers' take-home pay will rise as a result of the DA hike, which comes as households are still feeling the effects of inflation.
If the government proceeds with this proposal, the DA, which is currently at 50%, might increase to 53% on July 1, 2024. More than a crore central government workers and pensioners will probably gain from this. Workers will also get their July, August, and September arrears.
The raise was announced by the government before the holiday season last year. Prior to this, the government of Himachal Pradesh surprised its workers with a 4% DA raise shortly before Dussehra, which is anticipated to help 1.80 lakh workers and 1.70 lakh state pensioners.
