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Thursday, October 21, 2021

DA Increase: Govt gives Diwali gifts to central employees, 3 per cent hike in inflation allowance

DA Increase: Govt gives Diwali gifts to central employees, 3 per cent hike in inflation allowance

The government has decided to increase the dearness allowance of government employees by 3 per cent as a Diwali gift. This means that central employees will now get a 31 per cent inflation allowance,



  • The government's announcement will take effect from July 1
  • Benefit about one crore people
  • Why the government announced

The central government has given good news to government employees before Diwali, so a big announcement has been made before Diwali. The government has decided to increase the dearness allowance of government employees by 3 per cent as a Diwali gift. This means that central employees will now get a 31 per cent inflation allowance. More than one crore central employees and pensioners will benefit from this.


The announcement will take effect from July 1

As per the announcement of the central government, the new increase in inflation allowance will come into effect from July 1 this year. Earlier in July, the government had hiked the DA hike from 11 per cent to 28 per cent. Since then it has now been increased by 3 per cent. Because of this, government employees and pensioners will now get 31 per cent DA.

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Benefit about one crore people

The government's announcement will benefit 47.14 lakh central employees and 68.62 lakh pensioners. The announcement on the occasion of Diwali will cost the government Rs 9,488 crore a year.


Why did the government announce

The Ministry of Labor has recently released All India Consumer Price Index (AICPI) data for June, July and August. The AICPI index released in August shows that it has reached 123 points. The higher the index, the higher the level of inflation. Due to which the Central Government has announced Expenditure Allowance (DA) for employees.

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