New Delhi: In the backdrop of rising prices of vegetables and essential commodities, the central government employees this time can expect a 3% hike in dearness allowance. If granted, over one crore employees and pensioners will be benefitted, and their DA is likely to increase to 45%. Notably, DA is being provided to employees and pensioners to compensate them for rising prices.
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The Central government employees must take note that the dearness allowance is worked out on the basis of the latest Consumer Price Index for Industrial Workers (CPI-IW) brought out by the Labour Bureau every month. The Labour Bureau functions under the Labour Ministry.
Earlier, talking to PTI, All India Railwaymen Federation General Secretary Shiva Gopal Mishra said, “The CPI-IW for June 2023 was released on July 31, 2023. We are demanding a four percentage point hike in dearness allowance. But the dearness allowance hike works out to be a little over three percentage points. The government does not factor in hiking DA beyond the decimal point. Thus DA is likely to be increased by three percentage points to 45 per cent”.
He also added that the expenditure department of the Finance Ministry will formulate a proposal to hike DA along with its revenue implication and will put up the proposal before the Union Cabinet for approval.
When DA Hike Will be Announced?
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Even as the exact date of the DA hike has not been announced, media reports speculate that it will be announced in the month of September 2023. The decision in this regard is likely to be taken by the Union Cabinet, after the expenditure department of the Finance Ministry formulates a proposal to hike DA along with its revenue implication. After this, the proposal will then be put up before the Cabinet for approval. Once hiked, the latest DA hike will be effective from July 1, 2023.
At present, over one crore central government employees and pensioners are getting a 42 per cent dearness allowance. The last revision in dearness allowance was completed on March 24, 2023, and was effective from January 1, 2023.
Last time, the Central government had increased DA by four percentage points to 42 per cent based on the percentage increase in the 12 monthly average of the All India Consumer Price Index for the period ending December 2022.
The dearness allowance is given to employees and pensioners to compensate them for the rising cost of living and commodities. Notably, the DA is calculated by taking the average of the CPI-IW for the past 12 months.
Impact of DA Hike on Employees
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The DA hike announcement will surely bring cheers for the Central government employees and will have a positive impact on their standard of living. The DA hike will boost the spending power of central government employees and pensioners, which subsequently will lead to increased demand for goods and services. This will help to create jobs and boost economic growth.
