The recent Diwali announcement made by the government has brought significant changes in the realm of Cost of Living Allowance (DA) for Central Government employees, promising to reshape financial scenarios for millions.

Under the ambit of the Sixth and Fifth Pay Commissions, there’s a momentous development on the horizon for those receiving salaries based on government scales. The announcement involves an increase in the DA, indicating a substantial rise from the existing 221% to 230% for Central Public Sector Enterprises (CPSE) employees. This marks a notable 9% increase, slated to take effect from July 1, 2023.

Furthermore, employees within the scope of the Fifth Pay Commission are also in for a positive change. Their DA has been augmented across two categories, witnessing a significant 15% increase. Notably, some employees, despite a 50% merging of DA with their basic salary, didn’t receive the anticipated benefits. However, for those falling under this category, the revised DA has surged from 462% to 477%, while others, who availed the 50% merging, saw an increase from 412% to 427%.

This sweeping adjustment has impacted a considerable workforce, offering a 15% rise in DA for both categories of employees. This strategic decision by the government not only marks an essential financial improvement for the employees but also extends its benefits to approximately 49 lakh Central Government employees and 65 lakh pensioners.

The alteration in October under the Seventh Pay Commission saw a 4% increase in the DA for Central Government employees, enhancing it from 42% to 46%. This alteration, effective from July 1, has brought about a substantial positive change in the financial landscape for many.

This monumental decision by the government during the festive season stands to positively impact the lives of millions, ensuring a more stable financial footing for employees and pensioners alike.