Just before Diwali, the central Narendra Modi government (PM Modi Govt) has presented a significant gift to its central employees. Yes, according to the latest update from sources, the central government has declared a 3% increment in the dearness allowance (DA) for employees. Following this increase, the DA has escalated to 53%. Earlier, in March this year, there was a 4% DA hike.
DA Reaches 53% for Employees
Currently, central employees were receiving a 50% DA, and according to government sources, a 3% hike has been approved as a significant Diwali gift. This latest DA increment will take effect from July 1, 2024, making Diwali (Diwali) a more luminous festive season with a handsome salary boost.
Second DA Hike of 2024
Typically, the central government revises DA in January and July. Earlier, on March 24, 2024, the central employees enjoyed a 4% DA hike, raising it from 46% to 50%. With this fresh increase, it has now surged to 53%.
Calculation of Employees' Salary
Now, let's discuss the salary increment post-3% hike in dearness allowance by the government. For instance, if an employee's basic salary is Rs 55,200, their existing DA at 50% would be Rs 27,600. With the DA increasing to 53%, their allowance will become Rs 29,256. Essentially, the employees' salary would increase by Rs 1,656 (Rs 29,256 - Rs 27,600).
Three Months' Arrears Also Payable
Following the DA increase by the Modi government, central employees will also receive three months' arrears. Therefore, the October salary will include arrears for July, August, and September, resulting in a generous amount during Diwali.
It's important to note that the calculation of DA is related to the All India Consumer Price Index (AICPI), which monitors retail inflation over the past 12 months. In the face of global inflationary pressures and rising costs, this decision is crucial for managing household budgets across the nation.
MSP Increased for These Crops
The Cabinet has also decided to increase the MSP for Rabi crops, which is a substantial Diwali gift for farmers too. According to reports, new minimum support prices have been set for Rabi crops for the marketing season 2025-26. The MSP for wheat has been raised by Rs 150 per quintal, now set at Rs 2,425 compared to Rs 2,275 earlier. Mustard has seen an MSP increase of Rs 300 per quintal, jumping to Rs 5,950 per quintal from Rs 5,650. Similarly, the MSP for chana has been raised by Rs 210 per quintal, with the new MSP being Rs 5,650, up from Rs 5,440 per quintal.
