More than one crore central government workers and retirees are waiting for the government to decide whether to increase the dearness allowance (DA). The DA raise is often announced before the Holi holiday. However, the government did not mention it this time. There were earlier rumors that the Cabinet meeting on March 19 may accept the DA raise. However, the meeting did not happen, and the much-anticipated decision about this might ultimately be made at the next Cabinet meeting.

Why did it take so long to announce the DA hike?

The delay is attributed to the government’s financial and administrative permission, according to a number of media publications. The raise might have been announced before Holi if these procedures had been finished on schedule. However, sources claim that the decision is almost final and might be approved at any moment.

What is DA and who receives it?

Dearness allowance (DA), which is a cost-of-living adjustment, is given to central government workers and retirees to assist lower inflation. Before Holi (January–June) and before Diwali (July–December), it is changed twice a year. Employees in public sector enterprises (PSUs) get DA, whereas those in the private sector do not.

How much is the anticipated rise in DA?

This time, the DA is predicted to rise from 53% to 55%, a 2% increase. The All India Consumer Price Index (AICPI) data for July–December 2024 is used as the basis for this rise. However, other experts predict that increasing inflation might cause this rise to exceed 4%, bringing the DA to 57%. The Reserve Bank of India’s (RBI) recent modification of its inflation projection, which increased from 4.5% to 4.8%, may have an impact on the ultimate decision.

When will the DA increase be made public?

Given that the decision has already been postponed many times, there is a good chance that the government will approve the DA raise at the next Cabinet meeting, which is anticipated to occur next week. Employees will get the January, February, and March arrears in addition to their April compensation if the enhanced DA is authorized. The effective date of this is January 2025.

Government workers and pensioners are now awaiting formal confirmation in the hopes of hearing good news shortly.