
Fulfilling the long demand for employees, the Omar Abdullah government announced on Monday an increase in the Dearness Allowance (DA) for its employees and pensioners, raising it to 53 percent of Basic Pay or Basic Pension, effective from July 1, 2024.
This change, detailed in two official orders issued by the Finance Department, marks an increase from the previous rate of 50 percent. The decision to announce DA for employees was taken in the Cabinet meeting held on January 20.
Under the revised pay structure, as per the 7th Pay Commission recommendations, the term "Basic Pay" refers to the salary drawn in the prescribed Pay Matrix level, excluding special pay and other allowances. The arrears for the additional DA, covering the period from July 2024 to December 2024, will be paid in February 2025, while the revised rates will be applied to monthly salaries starting January 2025.

Similarly, the DA for pensioners and family pensioners has been increased to 53 percent of their Basic Pension or Basic Family Pension. Arrears for the same period will also be disbursed in February 2025, with revised pensions reflecting the increased rate from January 2025.
This move is expected to provide relief to employees and pensioners amidst rising inflation, ensuring better financial support for their day-to-day needs.
Centre announced 3% DA in October 2024
On October 16, 2024, the Union Cabinet approved an additional Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners. It was announced that the increase of 3% will be added to the current rate of 50% of Basic Pay of Pension to help offset rising prices.
After the announcement of DA by the Central government, the employee associations in Jammu and Kashmir were demanding the same should be implemented in the Union Territory.
![[Representational image] Salary](https://data1.ibtimes.co.in/en/full/634974/salary.jpg?h=450&l=50&t=40)
What is DA?
DA is a part of employees' salaries designed to counter the effects of inflation. Periodic hikes in DA help adjust government employees' effective salaries, ensuring their purchasing power remains intact. The amount of DA for government employees is based on the latest Consumer Price Index for Industrial Workers (CPI-IW), which is published monthly by the Labour Bureau under the Ministry of Labour. The percentage of DA is calculated using a specific formula established by the 7th Pay Commission.