New Delhi, August 23: A significant update awaits Central government employees and pensioners on basis of 7th pay commission, as reports suggest the Centre is expected to announce a 3% hike in Dearness Allowance (DA) and Dearness Relief (DR) in September 2024. If approved, the new DA rate will be effective from July 2024, raising the current DA from 50% to 53%.

This increase follows the previous DA hike, which was implemented in March 2024, effective from January 1, 2024. That adjustment saw a 4% increase, bringing the DA and DR to 50%. The periodic hike in DA on 7th pay commission recommendations is intended to help government employees and pensioners cope with the rising cost of living by offsetting inflationary pressures. The DA hike also impacts other benefits like the House Rent Allowance (HRA). 8th Pay Commission: What Will be Minimum and Maximum Salary of Govt Employees? Check Latest Update.

However, despite the expected increase, the Centre is unlikely to release the 18-month DA and DR arrears that were withheld during the COVID-19 pandemic. There has been no official announcement regarding these arrears, which has been a point of concern among employees and pensioners. 8th Pay Commission Implementation: Will the Salary of Central Govt Employees Increase by 30%? Know Details.

The DA/DR hike is usually announced twice a year—first in March and then in September—with the changes applied retroactively from January and July. The upcoming announcement will be particularly beneficial to thousands of central government employees and pensioners whose salaries are calculated based on the 7th Pay Commission recommendations.

Dearness Allowance is a critical component of the salary structure for government employees, designed to shield them from the adverse effects of inflation. The calculation for DA is based on the All India Consumer Price Index (AICPI), ensuring it reflects the actual rise in the cost of living.

(The above story first appeared on LatestLY on Aug 23, 2024 07:07 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).