DA Hike: Good News! Union Cabinet's 4% DA Hike to Central Government Employees, Gives Rs 12869 Crore Gift

DA Hike: The Union Cabinet approved a 4% increase in dearness allowance (DA) for central government employees on Thursday. This will result in an annual expenditure to the state exchequer of Rs 12,869 crore. Dearness Relief (DR) and Dearness Allowance (DA) will reach 50% after this increase. The DA increase will help 67.95 lakh pensioners and 49.18 lakh employees. DA and DR are typically hiked twice a year, in January and July.

Piyush Goyal's Announcement

Union Minister Piyush Goyal stated on Thursday that the central government employees and pensioners will benefit from an increase in allowances of Rs 24,400 crore. The Union Cabinet last raised the dearness allowance and dearness relief in October 2023, raising it by 4 percentage points to 46% with effect from July 1, 2023.

CPI Data Insights

The CPI data for industrial workers is used by the Centre to determine the amount of rise. The 12-month average, according to reports, is 392.83. DA will be 50.26 percent of base wage as a result. The Ministry of Labour's Labour Bureau releases the CPI-IW data each month.