DA Touched a Significant Mark of 50%
The Dearness Allowance (DA) has reached a significant milestone of 50%. Effective from January 1, 2024, the key component of salary, DA, has been increased to 50% for all categories of Central Government employees, pensioners, and family pensioners, up from the previous rate of 46%. This achievement marks a momentous occasion as DA reaches the half-century mark in its lifespan. It is a cause for celebration as eligible government employees will now receive 50% of their basic salary as DA in their pay slips.
4th Time 4% Hike in DA
The Dearness Allowance has seen a consistent 4% increase for the fourth time in a row. Starting at 34%, the DA has incrementally risen by 4% in each period. Commencing at 34% in January 2022, the Central Government has progressively raised the Dearness Allowance by 4% in July 2022, January 2023, July 2023, and January 2024, ultimately reaching a total of 50%.
50% DA History in 7th CPC
Tale of 50% DA Journey in the 7th CPC: The 7th Central Pay Commission introduced a fresh formula to compute the Dearness Allowance for the Central Government employees, effective from 1.1.2016. The DA kicks off at 2% in the initial installment starting from 1.7.2016! Witness the rollercoaster ride of DA with increments ranging from a modest one percent to a whopping five percent! Picture this: in July 2019, the rate skyrocketed by 5%, leaping from the existing 12%, and in July 2017, there was a cheeky 1% hike from the prevailing 4%! It is noteworthy that it took 96 months for DA to achieve the significant milestone of 50%. Please refer to the chart below to observe the progression that DA has undergone throughout the 7th Pay Commission.
