There are indications that the Centre may soon announce a decision on Dearness Allowance (DA) for central government employees and pensioners, with reports suggesting the announcement could come before the Holi festival.
DA is revised twice a year. It is calculated for a six-month period and paid to central government employees and pensioners accordingly. The first revision, covering January to June, is generally announced in March, while the second, for July to December, is usually declared around Dussehra or Diwali.
Last year, the Centre approved a three per cent DA increase, taking the total DA to 58 per cent.
Pay Commission Context
The Eighth Pay Commission has been constituted to recommend wage revisions for central government employees and pensioners. However, its recommendations are expected to take at least two years to be implemented.
Until then, the provisions of the Seventh Pay Commission are likely to continue. In this backdrop, DA payments are expected to be aligned accordingly.
The government set up the Eighth Pay Commission following demands from employees. The commission has begun its work and has invited employees to share their views through a questionnaire.
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