DA Hike In July 2024: Central government employees could receive encouraging news shortly, as the government is poised to revise Dearness Allowance (DA) or Dearness Relief (DR) rates. There is speculation that an increase in DA could be announced as early as July. Historically, these adjustments occur twice annually in the central government, typically in January and July.
How much DA increased in January
Let me inform you that the last increment in Dearness Allowance (DA) for central government employees occurred in March 2024, increasing it by 4%. Despite being implemented in March, the revision was retroactively applied from January onwards. As a result, there is a possibility of another DA hike around September-October. However, it will officially be considered effective from July.
How is DA calculated
The government changed the formula for calculating Dearness Allowance (DA) in 2006. Currently, DA calculation for central government employees is based on a revised formula. It uses the Average AICPI (All India Consumer Price Index) of the previous 12 months, subtracts 115.76, divides by 115.76, and then multiplies by 100 to determine DA%.
How much will DA increase
The government last raised Dearness Allowance (DA) in March this year, which became effective from January. Since then, DA has increased by 4 percent, reaching 50 percent. It is expected that DA could see an increase of 3 percent to 5 percent in July. If the increase is 5 percent, DA could potentially rise to 55 percent.
