Central Employees and Retirees to Receive Increase in Dearness Allowance in July

With the full budget for the financial year 2024-25 being presented, central government employees and retirees are set to receive good news in the month of July. In light of the increase in dearness allowance and salary for government employees, both small employees and high-ranking officers will benefit. Additionally, there is a possibility of an 18-month delay being addressed, prompting a demand to send a letter to Prime Minister Modi for the release of arrears in the payment of dearness benefit that was previously suspended due to the pandemic.

Shiv Gopal Mishra, Secretary of the Joint Consultative Mechanism of the National Council (Employee Side) for Central Employees, has written a letter to Prime Minister Modi urging the release of 18 months' arrears in dearness benefit. The increase in dearness allowance by 4 percent back in January 2024 had already benefitted central employees by 50 percent, leading to speculations of a further 4 percent increase in July. This increase is expected to provide relief to employees facing inflation, with significant increases in their allowances.

Possibility of DA Arrears Deposit and HRA Revision for Central Employees

The central government is considering depositing the DA arrears of 18 months for employees and pensioners, potentially resulting in significant amounts going into their accounts. Additionally, there has been a revision in the House Rent Allowance (HRA) rate, currently at 27%, 18%, and 9%, following the increase in dearness allowance. As the DA continues to rise, discussions are ongoing about when the next revision of the HRA will occur based on the increased DA percentage, with the last revision done in 2021 and the next anticipated in 2024.

The Modi government is planning to increase the DA of central employees and pensioners by 4 percent, bringing it to a total of 46 percent. This increase, based on the AICPI index data, is expected to result in a substantial hike in employees' salaries and pensions. The DA hike is determined by the AICPI-IW data released by the Labor Bureau, with the latest figures indicating a significant increase in the AICPI index from January to June, paving the way for the potential 4 percent increase in dearness allowance.