Recently, following the Central Government’s decision, various State Governments have initiated hikes in Dearness Allowance (DA) for their employees. It’s noteworthy that just a few days earlier, as a festive gift for Diwali, the Central Government had announced a 4% hike in the DA for its employees. Observing this, State Governments have now gradually started to announce similar hikes. Karnataka has already taken the lead in this initiative.

Details of the Hike:

The Central Government recently sanctioned a 4% increment in DA for its employees, prompting several State Governments to follow suit. The Karnataka Government has now declared a 3.75% increase in DA for its employees. For instance, if a state employee’s salary is ₹30,000, with the new DA increment, their salary will amount to ₹31,125.

Karnataka’s Boost in DA:

Karnataka has raised its Dearness Allowance from 35% to 38.75% for its employees. Furthermore, an increment of 4% in DA for lecturers and judicial authorities has also been announced. This enhancement will entail an additional expenditure of ₹1,109 crores for the government.

Central Employees to Benefit:

The Central Government’s 4% increase in DA will benefit 48.67 lakh employees and 67.95 lakh pensioners. The new DA rate has been set at 46% and will be applicable from July 1, 2023.

Central Decision, State Employees Gifted
Central Decision, State Employees Gifted

Impact on Exchequer:

The combined effect of the DA hike and inflation relief will exert an additional annual burden of ₹12,857 crores on the national treasury.

Quick Facts Table:

  • Central Government Employee’s DA: 46%
  • Karnataka Government Employee’s DA: 38.75%
  • Additional Expenditure: ₹1,109 crores (Karnataka)
  • Impact on Exchequer: ₹12,857 crores annually (Central)

Frequently Asked Questions:

  1. How much increment in DA have the Central and State Governments announced?
    • Central Government: 4%; Karnataka Government: 3.75%
  2. How many employees will benefit from this hike?
    • Central Government: 48.67 lakh employees and 67.95 lakh pensioners.
  3. What will be the financial impact of the DA increase on the exchequer?
    • An annual burden of ₹12,857 crores.
  4. From when will the new DA be applicable?
    • The revised DA will be effective from July 1, 2023.

Sonu Roy is originally a resident of Samastipur district of Bihar, has been working as a writer in digital journalism for the last 4 years. In his career of 4 years, he has good experience from politics, automobile, motivation, sports to technology field.