In a move set to impact millions, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a 3% increase in Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for pensioners. Effective from July 1, 2024, this hike raises the existing rate of DA and DR from 50% to 53% of Basic Pay/Pension, aiming to cushion against rising prices.
The decision will benefit approximately 49.18 lakh government employees and 64.89 lakh pensioners. However, the relief comes at a cost, with the total financial impact on the exchequer estimated at Rs. 9,448.35 crore annually.
Reactions from Common People:
Ravi Sharma, 42, a Central Govt. Employee, expressed mixed feelings: “Another small step, but prices keep rising! Last time they gave us a DA hike, but it feels like every time they announce it, the cost of everything else shoots up. This 3% increase will probably just cover the basics again, nothing extra.”
Sunita Verma, 68, a retired teacher, shared a similar sentiment: “Grateful, but not enough! While I appreciate the extra 3% DA, it’s hardly enough when groceries and gas keep getting more expensive. The last hike was nice, but with inflation, we need bigger hikes to actually feel the difference.”
Ajay Kumar, 35, (Not Disclosed the Dept), said this increase feels all too familiar: “Same old story every time. They keep increasing the DA by small amounts, but it never feels like it makes a real difference. The last DA hike gave a little relief, but with prices going up, it’s just not enough to feel secure.”
Meena Patel, 75, a pensioner, expressed some relief: “Better than nothing! At least they’re giving us something. Last time, it was the same—small relief—but every bit helps when you’re stretching your pension these days. Could have been worse!”
Rajesh Tiwari, 50, a government officer, voiced concerns about long-term stability: “Good, but when will prices come down? Great, another DA increase! But what we really need is for prices to stabilize. They keep giving us small increases like this one and the last, but it’s like pouring water in a leaking bucket.”
Kavita Reddy, 61, a just retired government employee, called for stronger measures: “We need real relief, not token hikes! Sure, this 3% hike is welcome, just like the last one, but with the cost of living rising fast, these small hikes won’t be enough. Real relief would come from controlling inflation, not just adjusting our pay.”
Though the hike brings some relief, for many, it seems like just a drop in the ocean compared to the increasing cost of living. While the government continues to follow the 7th Pay Commission’s recommendations, the debate on whether such adjustments can truly offset inflation continues to heat up among employees and pensioners alike.
As the 7th Pay Commission nears its end, employees are increasingly looking to the future. The current structure, with its incremental DA hikes, feels outdated and insufficient. What the common government employee is truly hoping for now is the announcement of the 8th Pay Commission.