DA Hike News 2024: Dearness Allowance Hike, 7th Pay Commission, Rates Table: Currently, the government has announced the good news of Hike in Dearness Allowance for government employees and pensioners due to which government employees and pensioners are quite excited.
In this article I will provide detailed information about the new DA Hike 2024, as well as we will go deep into the new dearness allowance rates. If you also want to know more information about the DA Hike News 2024 then read this article completely as it has the latest updates on Dearness Allowance 2024 Hike.
DA Hike News 2024
Recently the government has announced a Hike in Dearness Allowance, and the month of July is very important for government employees and pensioners because the Ministry of Finance is going to increase the DA in the upcoming days. DA is a taxable government payment which is calculated twice a year. Now central and public sector employees are extremely excited because of the DA Hike News 2024.
Dearness Allowance is a kind of payment which is given to employees and pensioners in the form of an increase in salary or pension at the time of an increase in wages. This allowance is very beneficial for government employees because it helps in securing their financial condition.
Highlights of Dearness Allowance Hike 2024
| Allowance Name | Dearness Allowances |
| Managed By | Ministry of Finance, India |
| Country | India |
| Year | 2024 |
| Month of Calculation | January and July |
| Last Increase Date | 1 January 2024 |
| Upcoming Increase Date | 1 July 2024 (Tentative) |
| Article Category | Finance |
| Official Website | https://doe.gov.in/ |
What is Dearness Allowance
Inflation is increasing day by day and people have to face some difficulties to survive in this difficult situation, hence the government gives some extra amount to its government employees apart from the salary, which is called an allowance, one of them is called Dearness Allowance.Â
DA is a taxable payment or benefit that a government employee receives from the government to offset inflation. The purpose of giving this allowance is to help employees to cope with rising living costs. The Ministry of Finance calculates the DA twice a year based on various factors.
Types of Dearness Allowances
There are 2 types of Dearness Allowance which government employees and pensioners receive from the government. Details are mentioned in the below points:
- Industrial Dearness Allowance: Industrial DA is given to Public Sector Employees of the Central Government which is revised quarterly based on the consumer price index (CPI), which reduces the impact of increased inflation.
- Variable Dearness Allowance: Variable DA is given to Central Government Employees which is revised every six months based on CPI with the same purpose of offsetting the impact of inflation. VDA is dependent on 3 diverse elements which are the Based Index, Consumer Price Index, and Variable DA amount. Variable Dearness Allowance is not a fixed allowance in nature, and it can fluctuate based on the cost of living.
Benefits of Dearness Allowance
The main benefit of Dearness Allowance (DA) is to reduce the impact of the rising levels of inflation. DA provides an opportunity to increase the income and pension of government employees. Such allowances give employees confidence in government policies and increase their work efficiency.
Dearness Allowance Rates Table
You can check the Dearness Allowance Rates Table from 2016 to 1 January 2024. From January 2020 to 1 January 2021 the hike was freezed as per the government order.
| Effective Date | Rate |
| 1 January 2024 | 50% |
| 1 July 2023 | 46% |
| 1 January 2023 | 42% |
| 1 July 2022 | 38% |
| 1 January 2022 | 34% |
| 1 July 2021 | 31% |
| 1 January 2021 | Hike was freeze |
| 1 July 2020 | Hike was freeze |
| 1 January 2020 | Hike was freezed |
| 1 July 2019 | 17% |
| 1 January 2019 | 12% |
| 1 July 2018 | 5% |
| 1 January 2018 | 9% |
| 1 July 2017 | 7% |
| 1 January 2017 | 5% |
| 1 July 2016 | 4% |
| 1 January 2016 | 2% |
How to Calculate Dearness Allowance
Under this point I will make you understand how Dearness Allowance is calculated by the government, so read the details carefully. The Ministry of Finance calculates the Dearness Allowance twice a year in fixed two months which are January and July. Before 2006 there was another formula followed by the government to calculate the DA but from 2007 the rules have been changed and since then government has followed the same rules and formula to calculate the Dearness Allowance. In the below table, AICPI stands for All India Consumer Price Index.
| Calculation for Central Government Employees | Calculation for Public Government Employees |
| DA% = (Average of AICPI based on base year 2001-100 for the last 12 months-115.76)/115.76*100 | DA% = (Average of AICPI based on base year 2001-100 for the last 3 months-126.33)/126.33*100 |
Understands 7th Pay Commission
Every 10 years, the Central Government comprise a Pay Commission. Due to this, the 7th Pay Commission was constituted on 8 February 2014 and the proposal came into effect in 2016. Now the government workers are anticipated for the 8th Pay Commission, which is expected to come in the current year 2024.
| Home Page | https://tswreis.in/ |
However, the Ministry of Finance has not made any public announcement for the 8th Pay Commission yet. 7th Pay Commission is only given to the defence personnel for all ranks including Brigadier etc. in MSP, as MSP stands for Military Service Pay and is given to employees who work in Military Services in India.
