By Admin 
Da hike: Even before the financial year starts, the Modi government has taken a big decision on government employees. On Friday, the central government has decided to increase dearness allowance by 2 percent. That is, now DA has increased from 53 percent to 55 percent, which will increase the salary of millions of employees.
What is DA and why?
Dearness Allowance (DA) means dearness allowance, government employees are given to reduce the impact of inflation. Actually, the basic salary decides the pay commission every 10 years, but DA changes every 6 months, so that the effect of inflation is reduced. The last time in July 2024, DA was increased from 50 per cent to 53 per cent.
When and how DA grows?
The government increases DA twice a year, January and July. However, the announcement may be late, but DA is calculated based on the AICPI-IW (inflation data) of January and December. Let me tell you, the decision of the cabinet applies only to the employees of the central government. However, later state governments usually follow the Center, they can increase DA at different times or at different rates.
What is AICPI-IW index?
This is a measure of inflation, on the basis of which DA is fixed. It issues the Labor Bureau under the Ministry of Labor.
How much money will increase from Da Hike?
If the basic salary of an employee is Rs 50,000, then he used to get a DA of Rs 26,500 on the basis of first (53 percent DA). But now after increasing 2 percent, DA (55 percent). Now, 27,500 rupees DA will be available now. That means profit of Rs 1,000 per month.
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