DA is a cost-of-living adjustment given to government employees and pensioners to mitigate the effects of inflation. It is calculated based on the Consumer Price Index for Industrial Workers,
DA Hike: According to an official order issued ahead of Diwali, the Karnataka government has increased the dearness allowance (DA) for its employees from 12.25% to 14.25% of the basic pay. The state finance department said the revised rate will come into effect from July 1 and will apply to both serving employees and pensioners. This is the second revision in DA in the current financial year. In May, the allowance was increased from 10.75% to 12.25%.
Announcement in these states also
It’s worth noting that similar revisions have been announced in other parts of the country. A few days ago, the governments of Arunachal Pradesh and Himachal Pradesh approved a 3% increase in DA for state employees and pensioners, raising it from 55% to 58%. This will also take effect from July 1. This decision will also apply to All India Services officers posted in the state. Chief Minister Pema Khandu said the increase will benefit thousands of employees and retirees.
3% DA has been increased for central employees
At the national level, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved a 3% dearness allowance (DA) hike for central government employees and pensioners on October 1. Under this revision, the allowance has become 58% of the basic pay with effect from July 1. The move is expected to benefit approximately 4.9 million employees and 6.9 million pensioners, with an estimated fiscal cost of ₹10,084 crore.
What is dearness allowance?
Dearness Allowance (DA) is a cost-of-living adjustment given to government employees and pensioners to mitigate the effects of inflation. It is calculated based on the Consumer Price Index for Industrial Workers (CPI-IW) released monthly by the Labor Bureau.
