DA Hike Update: Exciting News for Employees, State Governments to Make Major Decision on Dearness Allowance

DA Hike Update: Recently, a major update has brought good news for employees across the country. As per the latest information, state governments are set to make significant decisions regarding the dearness allowance (DA), which will come into effect from November 1.

For complete details related to this update, make sure to read the full report.

On the occasion of Diwali, the central government announced a 3% hike in dearness allowance for its employees, raising it to 53%. Following this decision, several state governments also declared increases in DA for their employees. However, despite this hike, employees in some states continue to face challenges regarding salary increments and other allowances.

Central Government Raises DA Again

The Modi government had previously increased the Dearness Allowance (DA) for employees by 4% ahead of the Lok Sabha elections, raising it from 46% to 50%. Now, the central government has once again decided to increase DA by 5%, effective from November 1. Following this, state governments are also stepping up and raising their employees’ DA in line with the central government. After this hike, the total DA for state government employees will reach 30%.

What is the DA for State Government Employees?

The state government has decided to raise the Dearness Allowance (DA) for its employees from 25% to 30%. This increase will reduce the DA gap between central and state government employees from 28% to 23%. Despite financial challenges, the government stated that this decision aims to improve employees’ financial well-being. The hike is expected to enhance their quality of life and help them cope with rising inflation.

Additional Burden of ₹500 Crore

In Tripura, the DA hike will add financial burden of ₹500 crore to the state government. However, this move will benefit 1.6 lakh government employees and 82,000 pensioners. The 7th Pay Commission was implemented in the state on October 1, 2018, and since then, there have been multiple DA increases. Most recently, in March 2024, the DA for state employees was raised by 5%, bringing it to 25%.

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