The government is likely to raise dearness allowance (DA) for its over one crore employees and pensioners by 3 per cent to 45 per cent under the agreed formula. At present, the DA is 42 per cent. Dearness allowance for employees and pensioners is decided on the basis of consumer price index of industrial workers (CPI-IW) released by the Labour Bureau every month. Labour Bureau is a branch of the Ministry of Labour. “The CPI-IW for June 2023 was released on July 31, 2023. We are demanding a four per cent hike in dearness allowance. But the government can increase the Dearness Allowance by three percent. It is likely to be 45 per cent. ”
The DA hike will be effective from July 1, 2023.
He further informed that the Department of Expenditure of the Finance Ministry will prepare a proposal for increase in DA with its revenue implications and place the proposal before the Union Cabinet for approval. The DA hike will be effective from July 1, 2023. At present, more than one crore central government employees and pensioners are getting 42 percent Dearness Allowance. The last revision in DA was done on March 24, 2023 and came into effect from January 1, 2023.
State governments have already increased
Many state governments of the country have increased the Dearness Allowance to their employees. Ahead of the Assembly elections in Chhattisgarh later this year, the Congress government had hiked dearness allowance (DA) for state employees by five per cent. The Rajasthan government had hiked dearness allowance by 4 per cent to provide relief to state employees and pensioners from inflation. Apart from this, many other states had also increased the Dearness Allowance.
