Mumbai, October 16: Central government employees and pensioners are likely to receive a Diwali bonus as the Union Cabinet is expected to approve a 3% hike in dearness allowance (DA) and dearness relief (DR). This decision, in line with the 7th Pay Commission recommendations, will increase the DA from 50% to 53% of the basic pay, effective from July 1, 2024

On September 30, S B Yadav, the general secretary of the Confederation of Central Government Employees and Workers, addressed a letter to Finance Minister Nirmala Sitharaman, voicing concerns about the delay in announcing the dearness allowance (DA) and dearness relief (DR) hike. He highlighted the growing discontent among employees and pensioners over the prolonged wait for the decision. The letter also noted that with the Durga Puja festival approaching, the declaration of the performance-linked bonus (PLB) and ad-hoc bonus is still awaited. 7th Pay Commission: Central Government Employees Likely To Get DA Hike Ahead of Diwali 2024, Say Reports.

Dearness Allowance (DA) and Dearness Relief (DR) are crucial financial components provided by the government to help mitigate the impact of inflation on its employees and pensioners. While DA is specifically given to government employees, DR is allocated to pensioners, ensuring they receive some protection against rising prices. Both DA and DR are reviewed and adjusted twice a year, in January and July, to reflect changes in the cost of living and to maintain the purchasing power of those reliant on government pay and pensions. 7th Pay Commission: Dearness Allowance Hike for Central Govt Employees Likely Soon, Know by How Much DA is Expected to Rise.

Currently, more than one crore central government employees and pensioners are receiving a 50 per cent dearness allowance. This periodic revision of DA and DR ensures that their earnings align more closely with inflation rates, thus providing some financial relief in the face of increasing expenses. During the last revision in March 2024, the central government had announced a 4 percent increase in both DA and DR, raising them from 46 percent to 50 percent of the basic pay.

(The above story first appeared on LatestLY on Oct 16, 2024 12:03 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).