Update on Dearness Allowance: Employees eagerly awaiting an increase in their dearness allowance have received promising news. Anticipation was high ahead of Holi, and now the hike has been finalized. The revised dearness allowance will take effect from January 1, 2025, with arrears for the delayed months being paid out.

A cabinet meeting chaired by Prime Minister Modi will announce the increase in dearness allowance (DA) and dearness relief (DR) for employees. So far, three potential figures for the increase have been reported: 2%, 3%, or 4%.

The increase in the dearness allowance for employees has been confirmed. This decision is based on the All India Consumer Price Index data. Although there was a slight decrease in inflation in December, it is still sufficient to justify a 3% increase in the dearness allowance.

The inflation rate has reached 55.99%. A figure above 0.50 is considered significant, indicating that the dearness allowance will rise to 56%. The 3% increase for central government employees is being finalized, which will significantly boost their minimum basic salary.

For instance, if an employee's minimum basic salary is ₹18,000, a 3% increase would add ₹540 to their monthly salary, resulting in an annual increase of ₹6,480.

The dearness allowance is revised twice a year. Adjustments are typically made on January 1 and July 1, with the government announcing these changes later. Employees will receive arrears for any delayed months.

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