Additionally, announcing an increment in Dearness Allowance for employees from 2% to 55%, which was earlier 53%, this is an increase in which the salary of employees will also increase. Although some employees call it a little according to the inflation rate, the effects will be starkly visible on their pay. So let’s know the effect of this increment on the salaries of employees and the details of this increase from the past.
Announcement Of Union Minister
Union Minister Ashwini Vaishnav further confirmed that, last week in March, an announcement was made by the government about a 2 percent increase in DA. This has increased the DA of employees from 53 percent to 55 percent. It will be effective from January 1, 2025, which the employees will be transferred along with the possible arrears in the salary of April.
Lowest Rate Of DA Hike
This time the government raised DA by 2 percent, which is the lowest in a span of 7 years. Earlier in 2018, there was a 2 percent increase in DA, while the government has usually been increasing more than 3 percent. It also increased by 4 percent and 3 percent in 2024.
Long Wait Of 18 Months
Employees did not get DA for 18 months during the Corona period. This period was from January, 2020 to June, 2021. At this time, the employees have raised a demand that the DA arrears for these 18 months be released. The government usually makes DA hikes twice in a year, 1st January to 30th June and 1st July to 31st December.
How Will The Employees Benefit From DA?
The Dearness Allowance is a component that directly affects the employee’s salary. It also helps in the better quality of life of employees and pensioners. Dearness Allowances protect employees from inflation and higher costs. The pensioners get DR, which also increases their pensions.
Importance Of DA For employees
Dearness Allowance increases the salary of employees, but also their quality of life. It would balance the cost of living with the difference in salary. Besides, retired employees will benefit through pension as well as DR, and that makes life so much simpler and comfortable.
Also Read: EPFO Pension Hike: Government Plans To Raise Minimum Pension To RS 7,500