DA Hike : Salary of central employees and pensioners is going to increase once. The government may announce an increase in dearness allowance very soon. Let us know further how much it can be increased.
Very soon a big gift is going to be received from the government for the central employees. The government is about to announce an increase in dearness allowance for these employees. For more than 1 crore employees and pensioners, the Central Government may increase the Dearness Allowance (DA) from the existing 42% to 45%. There is a fixed formula for this, on the basis of which dearness allowance is increased for central employees and pensioners.
Dearness Allowance for central employees and Dearness Relief (DR) for pensioners is decided on the basis of the latest Consumer Price Index-Industrial Workers (CPI-IW). The Labor Bureau issues this figure every month, on the basis of which the decision to increase the dearness allowance is taken. Labor Bureau is a department of the Labor Ministry.
Why can DA increase only by 3%?
Speaking to news agency PTI, Shiv Gopal Mishra, General Secretary of All India Railwaymen’s Federation, said, “The CPI-IW for June 2023 has been released on July 31, 2023. We are demanding a 4% increase in Dearness Allowance on the basis of this.” But, the calculation of dearness allowance is being done a little more than 3%. The government does not pay attention to the decimal points for the increase in dearness allowance. In such a situation, dearness allowance can potentially be increased from 42% to 45%.
When will it be applicable?
Shiv Gopal Mishra further said that the expenditure department of the finance ministry will prepare the proposal for increase in dearness allowance keeping in view the increasing burden on the exchequer. After this, this proposal will be sent to the Union Cabinet for approval. This increase in dearness allowance will be applicable from 1 July 2023.
When was the last increase and by how much?
At present, more than 1 crore central employees and pensioners get 42% dearness allowance. Dearness Allowance was last revised on 24 March 2023 and it was also implemented from 1 January 2023. During that time the government had announced to increase the dearness allowance by 4%.
Due to the increasing expenditure on many goods and services due to inflation, the government gives dearness allowance to the central employees. Dearness allowance is revised twice a year.
