Central Government Employees Likely to Receive a Substantial Diwali Bonus

Central government employees are expected to receive a significant bonus this Diwali, as the government is anticipated to announce a 3% increase in Dearness Allowance (DA). The official announcement is expected around the Diwali celebrations, scheduled for October 31, following the final decision in the upcoming Cabinet meeting.

What is Dearness Allowance (DA)?

Dearness Allowance (DA) is a portion of an employee's basic salary aimed at mitigating the effects of inflation on their living costs. This allowance is usually updated every six months to account for changes in the cost of living. The DA is calculated based on the All India Consumer Price Index (AICPI), which monitors shifts in retail prices.

Relief from Rising Inflation

A rise in DA leads to an increase in the net salary for government employees, offering some relief as inflation continues to impact households. At present, the Dearness Allowance is set at 50%. If the government implements the suggested plan, the new rate may increase to 53% . This adjustment is expected to benefit more than one crore central government employees and pensioners, with employees also receiving back pay for July, August, and September.

What's New Compared to Last Year?

Last year, the government announced an increase before the festive season. This year, the Himachal Pradesh government surprised its employees with a 4% DA hike just before Dussehra, benefiting 180,000 employees and 170,000 pensioners in the state.

Regular Revision Process

The central government typically increases the Dearness Allowance (DA) and Dearness Relief for employees and pensioners twice a year, in January and July, with announcements generally occurring in early March and October.

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In summary, this Diwali could be a special occasion for central government employees, as they anticipate a well-deserved reward for their hard work.