The central government has given a gift to the central employees-pensioners before Diwali. Amid the ongoing festival season, the Union Cabinet on Wednesday approved a 4 percent increase in dearness allowance (DA Hike) for Central Government Employees.
With this decision, DA of central government employees will increase from the current 42 percent to 46 percent. This increase will be given to the employees from July 1, 2023.
Impact will be Rs 12,815.60 crore
According to the news, in March this year, the Union Cabinet had increased the Dearness Allowance (DA) and Dearness Relief by 4 percent to 42 percent. According to Business Today news, Union Minister Anurag Thakur said that the total impact on the exchequer will be Rs 12,815.60 crore per year. This increase was effective from January 1, 2023. The cabinet had increased Extra DA by 4 percent in September last year, a few weeks before Diwali.
Lakhs of Central Government Employees of the country are going to benefit after this decision . Dearness Allowance can be defined as the cost of living adjustment allowance given by the government to government employees. According to the news, it is done on the basis of the latest Consumer Price Index (CPI-IW) for industrial workers. There is a fixed formula for calculating dearness allowance of central government employees and pensioners.
Formula of DA for Central Government employees
DA% = [(Average of AICPI for last 12 months (Base year 2001 = 100) – 115.76)/115.76] x 100
For public sector employees
DA% = [(Average of AICPI for last 3 months (Base year 2001 = 100) – 126.33)/126.33] x 100
This decision taken in the cabinet meeting is likely to benefit 47 lakh employees and 68 lakh pensioners. The Cabinet has also approved bonus for Central Government Railway employees.
