Nagpur: Ahead of the Holi festival, the Maharashtra Government has announced a 12 percent increase in Dearness Allowance (DA) for its State employees under the unrevised pay scale of the 5th Pay Commission, effective from July 1, 2024. With this hike, DA will rise from 443 percent to 455 percent of the basic pay and will be paid in cash, offering relief from rising living costs.
Employees will also receive arrears for the period from July 1, 2024, to January 31, 2025, which will be paid along with the February 2025 salary. This increase will benefit around 17 lakh employees, and existing DA disbursement procedures will remain unchanged, according to a Government Resolution (GR).
Gold Rate
Wednesday 26Feb. 2025
The expenditure required for the revised DA will be covered through budgetary provisions allocated under the respective salary and allowance heads. For grant-in-aid institutions and Zilla Parishad employees, the necessary expenses will be accounted for under the designated sub-heads meant for financial assistance.
Dearness Allowance (DA) is a cost-of-living adjustment provided to government employees, public sector workers, and pensioners in India to offset inflation. It is calculated as a percentage of the basic salary and revised periodically based on changes in the Consumer Price Index (CPI).
DA helps employees maintain their purchasing power, ensuring financial stability amid rising living costs. Pensioners also benefit from DA, aiding in post-retirement expenses. It varies by location (urban, semi-urban, rural) to address regional cost differences. By safeguarding real income, DA boosts employee morale and serves as a crucial component of salary structures in government and public sectors.
Meanwhile, a media report, citing people in the know, stated that the All-India CPI-IW for December 2024 suggests a 2% increase in DA for Central Government employees in January 2025, bringing it to 55.98% under the 7th Pay Commission.
