Civil servants employed by the central government have been informed of the current status of their Dearness Allowance (DA) as it was lately announced by the Finance Ministry for those under the 5th, 6th and 7th Pay Commissions. With the help of the increased DA, the employees will be in a better position to cater their increased living expenditures and there are new DA rates as per respective pay commission.
Sharing the Hike in Dearness Allowance
5th Pay Commission: The DA for the employees of this commission for this commission has rise from 443% up to 455% on their basic pay. This change will be made for all plans effective from 1 July 2024.
6th Pay Commission: For the employees under the pay 6th commission, Da had been increased to 246% from 239%. The new rate is effective from 1st of July 2024 as well.
7th Pay Commission: DA of employees under the 7th pay commission structure has gone up from 50% to 53% starting the same date.
What is Dearness Allowance (DA)?
Dearness Allowance, or DA, is an allowance put forward to government employees to fix their salaries with the current inflation rate. When there is inflation, DA acts as a countermeasure, and retains employees’ real wage rate. As a component of basic pay, DA is ajusted periodically, usually in January and July, based on the increase in inflation rates.
In the following subsection how this increase in DA will affect the salary will be discussed.
The specific amount of raise in DA will of course depend on the basic pay of the employee in question. For example, under the 6th pay commission, new DA rate of 246%, on a basic pay of INR 43,000, comes to be INR 105,780, while the old rate of 239% is INR 102,770. On the cost front, the DA component assists employees to cope with pressures resulting from inflation particularly on necessities for living, healthcare and other day to day needs, than the.
Who Will Benefit from This DA Hike?
These new DA rates are for everyone under the central government where individuals are paid through central pay commissions include civil servants, retirees and pensioners. It assures that employee(s) from urban, semi-urban, even rural appendices are protected against inflation.