7th Pay Commission: Government employees likely to get 4% DA hike in March 2024

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the Cabinet had last increased the DA for government employees and Dearness Relief (DR) for pensioners by four per cent. With that four per cent hike, the DA was increased from 42 per cent to 46 per cent. The decision benefitted 48.67 lakh central government employees and 67.95 lakh pensioners.

Earlier, Diwali bonuses for Group C and non-gazetted Group B level officials, including paramilitary forces, was approved by the government. For 2022–2023, the finance ministry has set a limit of ₹7,000 for the calculation of non–productivity linked bonuses (ad hoc bonuses) for central government employees. Also Read: 7th Pay Commission: Cabinet approves 4% hike in DA for central government employees The government decides on DA increases based on the country's inflation rate.

If inflation is high, the DA will most likely be raised further. The DA and DR increases are determined by the percentage increase in the 12-month average of the All India Consumer Price Index (AICPI) for the fiscal year. Meanwhile, West Bengal Chief Minister Mamata Banerjee had announced in December 2023, that her government would be giving a four per cent raise in DA to all its employees from New Year's Day.

"I announce that all 14 lakh state government employees, teaching and non-teaching staff of all schools, colleges and universities, and employees of all statutory undertakings and parastatals and pensioners would be getting another instalment of 4 per cent DA from January 1, 2024," said Banerjee. Stating that the provision of DA is mandatory for the central government whereas it is "optional" for the state, Banerjee said that for the DA hike, her government would have to bear an additional expense of ₹2,400 crore. Although the central government