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Union Government Approves 4% DA Hike: Applicable from 1 Jan 2024

In a move aimed at providing much-needed relief to millions of government employees and pensioners, the Union Government has approved a 4% hike in Dearness Allowance (DA). The decision, announced on March 7, 2024, following approval from the Cabinet Committee on Economic Affairs, is set to impact 50 lakh central government employees, including defense personnel, as well as 60 lakh pensioners across the country.

Impact and Details of the DA Hike

The approved 4% hike brings the total DA to 50%, effective from January 1, 2024. This marks the third consecutive 4% increase in DA, reflecting the government's commitment to addressing the financial concerns of its workforce amidst rising inflation and economic challenges. The decision is estimated to cost the Union Government approximately Rs 12,868 crore.

Employees can anticipate receiving two months' worth of DA arrears, with the payment expected to be credited alongside their March salaries. Currently standing at 46%, this DA hike will see the total DA reaching at 50%. 

HRA revision after DA hike

As per the 7th Pay commission recommendation, Union Minister Mr. Piyush Goyal, speaking at a press conference, highlighted that with the DA reaching 50%, adjustments will be made to the House Rent Allowance (HRA) for central government employees. Under the new revisions, the HRA for X, Y, and Z class cities will stand at 30%, 20%, and 10%, respectively.

Furthermore, in light of the DA hike, the gratuity limit for central government employees has been increased from Rs 20 lakh to Rs 25 lakh. This adjustment aims to provide additional financial security and benefits to government personnel, further enhancing their overall welfare.


The approval of the 4% DA hike by the Union Government underscores its commitment to supporting the financial well-being of its employees and pensioners. By addressing the needs of its workforce, the government aims to stimulate consumer spending and contribute to overall economic growth, furthering its mission of inclusive development and prosperity.

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