DA is given to government employees, while DR is given to pensioners.
7th Pay Commission: The central government is likely to increase dearness allowance for its employees by 3 percent in September, effective from July 2024.
7th Pay Commission DA Hike: Central government employees may soon see a boost as the government plans to raise dearness allowance (DA) by 3 percent in September, starting from July 2024. There are talks that the hike could reach up to 4 percent based on inflation conditions.
Currently at 50 percent of basic pay, the DA may be merged with basic pay as per the 7th Pay Commission recommendations. However, in case DA exceeds 50 percent, it will remain separate until the formation of the 8th Pay Commission, with allowances like HRA being increased instead.
Previously, DA had peaked at 170 percent in the 4th Pay Commission. The government also raised dearness relief (DR) by 4 percent earlier in March 2024.
With DA for employees and DR for pensioners reviewed biannually, the government is under several demands ahead of Budget 2024, including the formation of the 8th Pay Commission and restoration of the old pension scheme.
Minister of State for Finance Pankaj Chaudhary clarified in July that there are no current plans to constitute the 8th Pay Commission despite receiving requests.
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