Wait for July DA hike for central govt employees to end on Oct 3? Key decision likely at special cabinet meeting

7th Pay Commission: The long wait for the dearness allowance (DA) hike for central government employees may end tomorrow, October 3, as reports suggest that the Union Cabinet will announce its decision at a special meeting scheduled for that day.

Central government employees are eagerly awaiting the DA hike announcement, which is typically made at the end of September. This year, however, the announcement has been delayed, as we have already entered October.

Considering this delay in DA hike announcement, the Confederation of Central Government Employees and Workers recently wrote to Finance Minister Nirmala Sitharaman.

In its letter, the Confederation emphasized that the DA hike is usually announced in the last week of September, with salaries and pensions of government employees and pensioners disbursed along with three months of arrears (July-September) in the first week of October each year.

Also read: DA hike, festival bonus delays cause ‘severe discontent’ among central govt employees

The confederation also conveyed to the government that there is significant discontent among employees and pensioners due to the delay in announcing the Dearness Allowance (DA) and Dearness Relief (DR). Serving government employees are entitled to receive DA, while pensioners receive DR.

It also highlighted the need for the government to address the performance-linked bonus and adhoc bonus, which are applicable to various groups of government employees and are typically paid around the Durga Puja festival.

DA currently stands at 50% of employee’s basic salary

The last DA hike of 4% was announced in March this year but was implemented retroactively from January 2024. After last hike, the DA stood at 50% of the basic salary. Following this increase, there were speculations that the government might merge the DA into the basic pay and start anew from 0% DA. However, the government has consistently stated that such a proposal is not under consideration.

How much DA hike can government employees expect for July-December 2024?

It is highly likely that the government will raise the DA/DR by 3% this time. The DA hike is calculated based on the All India Consumer Price Index (AICPI), which tracks changes in retail prices across different sectors.