DA hike calculator: Dearness allowance & relief hiked by 3% – here’s how much extra salary, pension central government staff & pensioners will get


DA hike calculator: Dearness allowance & relief hiked by 3% - here’s how much extra salary, pension central government staff & pensioners will get
Dearness allowance, a component of the salary for government employees, has been increased to 53%. (AI image)

DA hike calculator: PM Narendra Modi-led Union Cabinet has approved a 3% increase in the dearness allowance (DA) for central government employees on October 16, 2024. Additionally, the dearness relief (DR) for central government pensioners has also been raised by 3%. As a result of this latest hike, the DA and DR now stand at 53% for both central government employees and pensioners respectively.This decision is set to benefit over 1 crore individuals.
The dearness allowance, a component of the salary for government employees and pensioners, has been increased to 53%. This rise in DA will lead to an increase in the take-home salary of central government employees starting from October 2024.
The effective date for the increased DA and DR is July 1, 2024. The central government typically revises these allowances twice a year, in January and July, with official announcements being made at a later date. Consequently, the DA/DR hike is implemented retrospectively from the cut-off date of July 1, 2024.
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Central government employees can expect to receive the increased DA starting with their October salary, following the announcement of the hike on October 16, 2024. Moreover, they will be entitled to arrears for the previous three months, covering July, August, and September, according to an ET report.

DA Hike Calculator: How much will the take home salary increase?

To understand the impact of this 3% DA hike, let’s consider an example:

  • Assuming a central government employee has a basic pay of Rs 46,200, their previous dearness allowance at 50% was Rs 23,100. With the DA now at 53%, their dearness allowance will increase to Rs 24,486.
  • This means they will receive an additional Rs 1,386 (Rs 24,486 – Rs 23,100) in DA from October. As the DA hike is effective from July 1, 2024, they will also receive arrears for the last three months.

DR Hike Calculator: How much will the pension increase?

Similarly, the dearness relief for central government pensioners has been raised by 3%, bringing it to 53%. This increase will result in a higher monthly pension for these pensioners starting from October 2024. Let’s consider an example to understand the impact:

  • If a central government pensioner receives a basic pension of Rs 50,400 per month, at the previous 50% DR, they were getting Rs 25,200.
  • With the DR now at 53%, they will receive Rs 26,712 monthly as dearness relief. This means their pension will increase by Rs 1,512 per month.



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