In a significant move ahead of the Lok Sabha elections, Karnataka Chief Minister Siddaramaiah announced a hike in the dearness allowance (DA) for state government employees and pensioners on Tuesday (March 12). The increase is from the existing 38.75% to 42.5% of their basic pay, effective from January 1, 2024.
The Chief Minister stated that this adjustment will also apply to pensioners, making it a measure benefiting a large section of the state's workforce.
On platform X, Siddaramaiah said, "This change represents a significant financial commitment of ₹1,792.71 crore every year, reaffirming our dedication to our employees."
Union Minister Piyush Goyal announced the decision, stating, "The Union Cabinet has approved the release of an additional installment of
Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners from January 1, 2024, representing an increase of 4 percentage points over the existing rate of 46% of the basic pay/pension, to compensate against price rise."
This move is expected to benefit over a crore employees and pensioners across the country and comes as a proactive step to address the impact of rising prices on the cost of living.
The adjustment in Dearness Allowance is calculated based on the latest Consumer Price Index for Industrial Workers (CPI-IW), released monthly by the Labour Bureau, and is determined as a percentage of the basic salary.