New Delhi/IBNS: The central government on Wednesday (Oct. 16) approved a 3 percent increase in Dearness Allowance (DA) for its employees and pensioners, weeks ahead of Diwali.

Previously set at 42 percent, this hike will raise the DA and Dearness Relief (DR) to 45 percent, effective from July 1, 2024.

With this adjustment, an entry-level central government employee earning a starting salary of around Rs 18,000 per month can expect a monthly raise of approximately Rs 540, starting from July 1, 2024.

The employee will also receive arrears for the months of July, August, and September.

This increase provides significant financial relief to central government employees.

Dearness Allowance (DA) is an essential component of compensation for over 10 million central government employees and pensioners.

It helps mitigate the impact of inflation by adjusting salaries based on the Consumer Price Index (CPI), ensuring that earnings keep pace with the rising cost of living.

The government typically revises DA twice a year, with changes taking effect in January and July.

Announcements for these hikes are usually made in March and September.

The January DA hike is generally announced around Holi in March, while the July adjustment is made around Diwali in October or November.

In related news, Chhattisgarh Chief Minister Vishnu Deo Sai announced a 4 percent increase in DA for state government employees ahead of the festive season, bringing it to 50 percent of their basic salary.

This hike, which takes effect on October 1, will benefit approximately 3.9 lakh state government employees.

The Chief Minister’s Office (CMO) made the announcement on the social media platform X (formerly Twitter), calling it a Diwali gift for state employees.

Earlier in March, the Chhattisgarh government had raised the DA to 46 percent.

Similarly, the Himachal Pradesh government also approved a 4 percent DA hike ahead of Diwali, benefiting around 180,000 employees and 170,000 pensioners in the state.