According to the formula developed, the Central Government is prepared to boost the dearness allowance (DA) of more than one crore employees and retirees by four percentage points, from the current 38 percent to 42 percent.
Central Government to increase dearness allowance (DA) for its one crore employees and pensioners
Every month, the Labour Bureau, a division of the Labour Ministry, releases the most recent Consumer Price Index for Industrial Workers (CPI-IW), which is used to calculate dearness allowance for employees and pensioners.
All India Railwaymen Federation , General Secretary , Shiva Gopal stated,
“The CPI-IW for December 2022 was released on January 31, 2023. The dearness allowance hike works out to be 4.23 per cent. But the government does not factor in hiking DA beyond decimal point. Thus DA is likely to be increased by four percentage points to 42 per cent.”
Centre likely to hike dearness allowance by 4 percent to 42 percent
The Finance Ministry’s expenditure division will draft a proposal to increase DA along with the income implications and would present the idea to the Union Cabinet soon, it was further explained.
Since the previous DA review on September 28, 2022, which became effective on July 1, 2022, more than one crore Central Government employees and pensioners have received DA increases totaling more than 38%.
Based on the percentage increase in the 12-month average of the All India Consumer Price Index for the period ending June 2022, the Center hiked DA by four percentage points to 38 percent.
Employees and pensioners receive DA as payment for price increases. Over time, the cost of living rises and is represented in the CPI-IW.
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