7th Pay Commission: Increase in Dearness Allowance Ahead of Diwali for Government Employees

Following the recent 3% increase in dearness allowance (DA) announced by the central government, several states are following suit by enhancing benefits for their government employees and pensioners. This rise in DA, effective from July 1, 2024, aims to alleviate the effects of inflation on government employees by adjusting their salaries to reflect the increased cost of living. The move is set to impact millions of employees across various states, providing a financial boost ahead of major festivals like Diwali.

Dearness Allowance Hike for Uttar Pradesh Employees

In Uttar Pradesh, approximately 17 lakh government employees, teachers, and pensioners are expected to receive a 3% increase in their dearness allowance and dearness relief (DR) before Diwali. The announcement is likely to be made by Chief Minister Yogi Adityanath, providing a much-anticipated festive bonus. The increase comes after the central government’s decision to raise DA by 3%, and the UP government is expected to follow this trend, ensuring its employees benefit from a similar adjustment.

Tamil Nadu Government Increases DA by 3%

Meanwhile, the Tamil Nadu government has also implemented a 3% increase in DA for its government employees, teachers, pensioners, and family pensioners, effective from July 1, 2024. This decision is set to benefit 16 lakh individuals, who will see a significant rise in their monthly incomes. The annual financial burden on the Tamil Nadu government as a result of this increase is projected to be around ₹1931 crore. This hike ensures that government employees and pensioners in Tamil Nadu receive compensation that better reflects rising inflation, supporting them ahead of the festive season.

Central Government’s DA Hike Announcement

The central government had previously announced a 3% increase in dearness allowance, effective from July 1, 2024. Earlier in March 2024, the central government had raised DA by four percentage points, bringing it to 50% of the basic salary, effective from January 1, 2024. This latest hike is part of ongoing efforts to support government employees and pensioners amid rising inflation. The central government currently employs 49.18 lakh individuals and provides pensions to 64.89 lakh retired personnel, all of whom will benefit from this DA increase.

Dearness Allowance Hikes Across States

Several state governments are also following the central government’s lead by announcing increases in dearness allowance for their employees. In Chhattisgarh, Chief Minister Vishnu Dev Sai announced a 4% increase in DA for state government employees, effective from October 1, 2024. This increase brings the total DA in the state to 50% of the basic salary, aligning with the DA rate set by the central government. State government employees had long been advocating for DA parity with central government employees, and their demands have now been met.

Similarly, the Sikkim government has increased its employees’ dearness allowance by 4%, while Himachal Pradesh has also raised allowances for its employees, ensuring that workers in these states receive the financial support necessary to cope with inflationary pressures.

Conclusion

The 3% increase in dearness allowance, announced by the central government and adopted by several states, including Uttar Pradesh, Tamil Nadu, and Chhattisgarh, is a significant development for government employees and pensioners. This rise in DA ensures that salaries and pensions keep pace with inflation, providing financial relief to millions of workers and retirees across the country. As the 7th Pay Commission continues to guide such policy decisions, these adjustments demonstrate a commitment to supporting public sector employees and pensioners, especially during the festive season.

With state governments aligning their DA rates with the central government’s decisions, the move reflects a unified approach to addressing inflation and maintaining the purchasing power of government employees, helping them manage the rising costs of living more effectively.