7th Pay Commission: Cabinet Approves Hike in DA for Central Government Employees, MSP On Jute Raised

7th Pay Commission: The Modi government has approved a hike in Dearness Allowance for Central Government Employees.

Author: India.com News Desk Edited by: Victor Dasgupta

Updated: March 7, 2024, 8:23 PM IST

Share

Share Article

• Facebook
• WhatsApp
• X
• Email
• Telegram
• Linkedin

https://www.india.com/business/7th-pay-commission-cabinet-approves-hike-in-da-for-central-government-employees-hike-in-msp-on-jute-live-nirmala-sitharaman-6771450/ Copy

7th Pay Commission: The Meghalaya government hiked the dearness allowance for employees and pensioners from 36 per cent to 39 per cent,

7th Pay Commission: The Modi government on Thursday approved a hike in Dearness Allowance for Central Government Employees by 4 percent. The Union Cabinet has also approved the Minimum Support Price (MSP) for Raw Jute for 2024-25 season at Rs 5,335 per quintal, an increase of Rs 285 per quintal over the previous season.

#WATCH | Union Cabinet approves hike in Dearness Allowance to govt employees and Dearness Relief to pensioners by 4% from January 1, 2024, announces Union Minister Piyush Goyal. pic.twitter.com/IsWUnwBGHW

— ANI (@ANI) March 7, 2024

Here Are Some Of The Key Decisions Taken By Union Cabinet:

• Union Cabinet approves hike in Dearness Allowance to govt employees and Dearness Relief to pensioners by 4 percent from January 1, 2024
• The Union Cabinet has approved the Minimum Support Price (MSP) for Raw Jute for 2024-25 season at Rs 5,335 per quintal, an increase of Rs 285 per quintal over the previous season
• Union Cabinet has approved a comprehensive national-level IndiaAI mission with a budget outlay of over Rs 10,000 crores
• Cabinet has approved the continuation of the Rs 300 subsidy to PM Ujjwala Yojana consumers till 31st March 2025. The total expenditure for this will be Rs 12,000 crores

Total DA Hike reaches 50 Percent

Now that the Centre has hiked the DA by 4%, the total dearness allowance and dearness relief has touched 50 per cent. The DA and DR for the Central government employees are hiked twice a year – once in September or October and second time is February or March.

50 Lakh Govt Employees To Benefit

More than 50 lakh government employees and 62 lakh pensioners will be benefitted if the Centre hikes their DA by 4% this time. The move from the Centre will cheer on their faces. Once the Union Cabinet approves the DA, the suggested DA hike will be effective from January 1, 2024.

Here’s How DA Hike is Calculated

The Central grants DA and DR to the government employees as a a cost-of-living adjustment allowance to mitigate the challenges of price rise and inflation.

The DA hike in general is calculated as a percentage of the basic salary. For example in case of the Central Government employees: Dearness Allowance percent = ((Average of AICPI (Base Year 2001=100) for the past 12 months -115.76)/115.76) *100