Central government employees are likely to get a huge Diwali bonus as the government is expected to announce a 3% Dearness Allowance (DA) hike. The official declaration may come closer to Diwali celebrations, set for October 31, it was reported after the decision is finalised in the next Cabinet meeting.

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Dearness Allowance (DA) is calculated based on the All India Consumer Price Index (AICPI), which tracks retail price movements and is is revised twice a year. Hike in DA means increased take-home pay for government employees at a time when inflation continues to impact households.

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At present, the DA stands at 50%, but if the government moves ahead with this plan, the new rate could go up to 53% from July 1, 2024. This will likely benefit more than a crore central government employees and pensioners and employees will also receive arrears for the months of July, August, and September.

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Last year, the government announced the hike before the festive season. Ahead of the same, the Himachal Pradesh government has already given its employees an early Diwali surprise with a 4% DA hike just before Dussehra which is expected to benefit 1.80 lakh employees and 1.70 lakh pensioners in the state.

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