West Bengal DA Hike: The West Bengal government has given a big relief to its more than 10 lakh government employees by announcing a 4 percent increase in dearness allowance. West Bengal Finance Minister Chandrima Bhattacharya gave this information while presenting the state budget. The Finance Minister said that the state government will increase the dearness allowance of state government employees by four percent from April 1, 2025. This will increase the total dearness allowance of more than 10 lakh employees and pensioners of the state government to 18 percent.

What is Dearness Allowance (DA)?

Dearness Allowance (DA) is an allowance given to government employees and pensioners, which is given to balance the effect of inflation. Its purpose is to ensure that the purchasing power of the employees is not affected by rising inflation.

How is the dearness allowance calculated?

Dearness Allowance is calculated based on the Industrial Workers Consumer Price Index (CPI-IW). It is released by the Central Government from time to time and is revised according to the inflation rate.

Effect of increase in dearness allowance

Purchasing power of government employees increases –
When DA increases, the income of employees increases, so that they can buy expensive goods and services.

Pensioners get relief –
With the increase in DA, the monthly pension of government pensioners also increases, which improves their financial condition.

Demand increases in the market –
With the increase in the income of government employees, their spending capacity increases, which increases the demand for goods and services in the market.

The financial burden on the government increases –
Since lakhs of government employees and pensioners come under DA, its increase increases the burden on the government treasury.

Effect on inflation –
If more people start spending more, then inflation may increase further due to increased demand for goods and services.

When is the Dearness Allowance revised?

The government reviews DA every year in January and July and increases it as needed. The central and state governments pay DA at different rates, depending on their financial resources and policies.

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