The Dearness Allowance (DA) for central government employees is revised biannually, in January and July. Speculation has been rife about a potential increase in DA since July. However, a recent press release from the Labour Bureau has confirmed the details of the upcoming DA adjustment for July 2024.
After the Consumer Price Index for Industrial Workers (CPI-IW) increased by 1.5 points in June 2024, the Dearness Allowance (DA) and Dearness Relief (DR) for Central Government employees and pensioners will be set at 53% starting from July 2024, which is a 3% increase. This increase is expected to be approved by the Central Cabinet in September 2024.
In this short piece of news updates, we will see what government updates are coming regarding confirming the DA/DR increase to 53%.
Labour Bureau Announcement
The Labour Bureau has announced that the All-India Consumer Price Index (CPI-IW) for June 2024 has increased by 1.5 points to reach 141.4. As a result, the Dearness Allowance (DA) and Dearness Relief (DR) for Central Government employees and pensioners will increase to 53% starting July 2024, a 3% rise from the previous rate.
Important Information
- CPI-IW Index: The CPI-IW for June 2024 has reached 141.4 points.
- Inflation Rate: The inflation rate in June 2024 was 3.67%, down from 5.57% in June 2023. You can find the inflation rate trend in the press release from the CPI-IW.
- Increase in DA/DR: The DA/DR for Central Government employees and pensioners has been set at 53% from July 2024, as determined by the 7th Pay Commission.
Dearness Allowance /Dearness Relief from July 2024
Issue of All-India CPI-IW for June 2024
|
Increase/ Decrease Index
|
Month
|
Base Year 2016 = 100
|
Base Year 2001 = 100
|
A total of 12 Months
|
Twelve monthly Average
|
%
increase over
115.76 for 6CPC DA
|
% increase
over 261.42
for 7CPC DA
|
6CPC DA
announced or will be
announced
|
7CPC DA
announced
or will be
announced
|
|
DA/DR from Jan, 2024
|
239%
|
50%
|
0.1
|
Jan,24
|
138.9
|
400
|
4732
|
394.33
|
240.65%
|
50.84%
|
|
|
0.3
|
Feb,24
|
139.2
|
401
|
4751
|
395.92
|
242.02%
|
51.45%
|
|
|
-0.3
|
Mar,24
|
138.9
|
400
|
4767
|
397.25
|
243.17%
|
51.96%
|
|
|
0.5
|
Apr,24
|
139.4
|
401
|
4782
|
398.50
|
244.25%
|
52.44%
|
|
|
0.5
|
May,24
|
139.9
|
403
|
4797
|
399.75
|
245.33%
|
52.91%
|
|
|
1.5
|
Jun,24
|
141.4
|
407
|
4811
|
400.92
|
246.33%
|
53.36%
|
|
|
|
Confirm DA/DR from July 2024
|
246%
|
53%
|
The increase in Dearness Allowance (DA) and Dearness Relief (DR) for the Central Government and pensioners has been confirmed. It will be implemented after getting approval from the Cabinet, thereby ending speculations about the potential increase in Dearness Allowance (DA) and Dearness Relief (DR) in the coming months.
The Union Cabinet is expected to approve this increase easily, securing the financial benefits it will bring. The adjustment in DA/DR reflects the government's response to inflation and commitment to ensuring its workforce's and retired personnel's economic well-being.
The data on which CPI-IW released the press is based on retail prices collected from 317 markets in 88 industrial centres across the country released by the Labor Bureau.
Press Release CPI-W, June-2024
Here is the official press release by the Ministry of Labour and Employment (Labour Bureau).