The central government employees and pensioners are going to be benefitted by Dearness Allowance (DA) hike, announced recently. A valid question and that too for many is when would be the date for crediting arrears and also how much would they get. This article dwells upon various aspects of the recent DA hike, calculations for the myth of arrears computation, and what to expect in terms of payout.
DA Hike Overview
As per news, the government announces a rise of 3% in Dearness Allowance, consequently increasing it from 50% on current salaries to 53% for all central government employees and pensioners. This increase shall come into effect from January 1, 2025, which means that employees will be credited three months’ dues for January, February, and March against their revised salary payable from April of 2025.
DA Arrears Calculation
Arrears would be the payment between the effective date of DA hike and date of implementation. Since this applies for January 2025, three months\u2019 arrears (January, February and March 2025) would be calculated before the new salary structure would come into effect in April.
Now, the exact amount of arrears that each staff may draw would depend on his/her basic salary. Below is rough average amount calculation as per these pay levels:
- Salary: ₹18,000
- DA Increment: 3% of ₹18,000 = ₹540/month
- Total Arrears for 3 months: Total Arrears: ₹1,620
- Basic Salary: ₹56,100.
- DA Increment: 3% of ₹56,100 = ₹1,683/month
- Total Arrears for 3 months: Total: ₹5,049.
- Basic Salary: ₹1,44,200.
- DA Increment: 3% of ₹1,44,200 = ₹4,326/month
- Total Arrears for 3 months: ₹12,978.
When Will Arrears Be Credited?
The DA hike arrears will normally be credited within one or two months of the official announcement. As per the past trends and samplings, employees could expect an amount of interest payable along with their salary for April or May 2025. Similarly, pensioners will receive this in the pensions along with applicable arrears of earlier months.
Conclusion
It comes as a great relief for employees and pensioners who need to deal with inflation. The extra backdated payment will act as an economic buffer for lower-paid employees and pensioners. Employees must see the pay slips and other official notifications to know the amount of benefit with the payout of arrears.
Get updated with the official announcements about date for arrears disbursement!
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