October 16, 2024 - The Cabinet of the Union Government has announced an increase of 3% in Dearness Allowance (DA) for Central government employees, as per the 7th Pay Commission. With this increase, just ahead of Diwali, the DA has now gone up to 53% and will be effective from July 1, 2024.

DA is revised twice a year from January 1 and July 1 with official announcements coming early March and October. It is based on an increase in 12 monthly average of All India Consumer Price Index for Industrial Workers (AICPI-IW) which monitors retail price fluctuations and is published by the Labour Bureau.

This hike is applicable to government employees and is said to benefit around a crore. Pensioners will also get a 3% hike in Dearness Relief (DR).