The Union Cabinet has announced a 3 per cent increase in the DA as a Diwali gift to employees and pensioners. This adjustment will raise the DA from the current 50 per cent of basic pay to 53 per cent, effective from July 1, 2024.
This increase comes on the heels of a 4 per cent hike implemented in March, prior to the general elections, which took effect from January 2024. The government has already disbursed three months’ arrears to eligible personnel.
The DA is revised biannually, reflecting the rising cost of living, and is calculated based on the All India Consumer Price Index (AICPI).