Dearness Allowance Hike Announced for Central Government Employees Under 5th and 6th Pay Commissions

The Union government has approved a raise in Dearness Allowance (DA) for specific central government employees who are being paid according to the old, pre-revised scales of the 5th and 6th Central Pay Commissions. This decision was confirmed through an Office Memorandum issued by the Department of Public Enterprises, under the Ministry of Finance, on November 7, 2024, to help counteract inflationary pressures affecting the wages of these employees.

Central government employees in Central Autonomous Bodies who are on the 6th Central Pay Commission (CPC) scale will see a DA increase from 239% to 246% of their basic pay. This adjustment is effective retroactively from July 1, 2024. For example, an employee with a basic monthly salary of Rs 43,000, who was previously receiving Rs 1,02,770 in DA at 239%, will now receive Rs 1,05,780 at the updated rate of 246%. This revised DA rate applies to both Central Government and Central Autonomous Bodies employees on the 6th CPC pay structure, in line with provisions outlined in the Ministry’s Office Memorandum No. 1(3)/2008-Ε.ΙΙ(Β) dated August 29, 2008.

Additionally, the Office Memorandum addresses the DA for employees on the 5th CPC scale. For these employees, the DA has been raised from 443% to 455% of basic pay, also effective from July 1, 2024. This increase follows guidelines in the Ministry’s Office Memorandum No.1(13)/97-Ε.ΙΙ(Β) dated October 3, 1997. The revised DA rate is applicable uniformly to both Central Government and Central Autonomous Body employees who are still on the 5th CPC scale.

For employees covered by the 7th Central Pay Commission, the DA has been increased from 50% to 53% of basic pay as of July 1, 2024, ensuring that government employees and pensioners at various pay commission levels are similarly supported against inflation.

Dearness Allowance is a crucial component of government employees’ salaries, aimed at cushioning the impact of inflation. The government typically reviews and adjusts DA twice each financial year, in January and July. DA adjustments may vary based on the employee’s work location, whether in an urban, semi-urban, or rural area.