DA Hike 2024: The news on DA Hike is true. Prime Minister Mr Narender Modi has given the official statement about the hike in DA. The official statement was made during the Cabinet Meeting on 16 October 2024 and the govt will impose the DA Hike from 01 July 2024. We are here with the full details on the DA Hike in 2024 below, go through the details carefully.
DA Hike 2024: Overview
The hike in DA is announced by the Central Govt. DA is Dearness Allowance and it is implicable on government employees. On the other hand, DR is Dearness Relief and it is for the pensioners. The 3% hike will be for both DA and DR and the date of implication of DA for everyone will be from 01 July 2024.
On 16th of October 2024, Wednesday, Prime Minister Mr Narender Modi Ji was in the Cabinet Meeting and announced the updates on the DA Hike. The basic pay of govt workers and retirees is going to increase from 50% to 53%. This will be a great financial boost for the govt employees. The govt has addressed the issue of the rising living cost of the person and that has been impacting the household. To keep this in mind, the decision to increment in DA is made. The beneficiaries of DA Hike will be more than 01 Crore govt employees and pensioners in India.
The counteract of inflation is DA. The govt provides a hike in DA to channel the market and product purchasing power should not be affected by the increase in inflation. The govt also mentioned that when the DA hike is going to be implemented, the govt has to prepare a budget of Rs 9448 crores.
Impact On Pensioners
The pensioners in India who retired from the govt jobs will also get the benefit of DR Hike in 2024. The DA Hike for pensioners will be 3%. Pensioners also face financial issues due to the impact of inflation and it will be a great relief for them to get the 3% DR hike. As DA is increased twice in a year and similarly, the DR is also incremented twice in a year. The months of implication are January and July. In January, the DA was increased to 50%.
How Much More Will Employees Get?
Now, the govt job employees are thinking of what extra they will get in their salary. Let us understand this with an example. Suppose a person’s monthly salary is Rs 30000. And the basic pay is Rs 18000. So, currently, the DA is 50%, which means the govt employee is receiving Rs 9000 as DA. Now, the DA has increased by 3%, which implies, that the person will receive now Rs 9540 as DA. The salary increment is Rs 540 per month. The employees who have high basic pay will get higher DA as per the percentage of increase.
How Is DA Calculated?
The calculation of DA depends on the All India Consumer Price Index- AICPI. The AICPI index is used to track the cost of living. When the AICPI index is increased, the govt plans to increase the DA. It is calculated once a year, probably in June 2024. The govt increases the amount of DA every six months.
The formula to calculate the amount of DA is given below.
- DA% = ((Average of AICPI (Base Year 2001=100) for the past 12 months – 115.76) / 115.76) x 100.
The formula to calculate the amount of DA for central public sector employees is slightly different
- DA% = ((Average of AICPI (Base Year 2001=100) for the past 3 months – 126.33) / 126.33) x 100.
The govt of India has increased the DA by 4% in March 2024 and now the increment is by 3% effective from July 2024. The current DA% is now 53% of the basic pay.
In Short
- The hike in DA will be 3% for the govt employees.
- The Govt of India will provide the benefit of DA Hike effective from 01 July 2024.
- In India, currently, more than one crore govt job employees and pensioners will get the benefit of DA Hike.
- The DA will now rise from 50% to 53%.