Central Government likely to announce three percent DA hike for employees and pensioners

In recent news, the Central Government is likely to increase the DA (Dearness Allowance) by three percent. This would hike DA from its current 42 percent to 45 percent.

This hike in DA is to be applicable for over one crore employees and pensioners of the Central Government.

This hike comes after the revised Consumer Prices Index for Industrial Workers (CPI-IW) which is brought out by the Labour Bureau every month.

Shiva Gopal Mishra, General Secretary of All India Railwaymen’s Federation, said that they had demanded a four percent DA hike after the CPI-IW for June 2023 was released on July 31, 2023. He also explained that the Finance Ministry will put up a proposal in front of the Union Cabinet for DA hike along with its revenue implication.

Following which, the DA hike will be considered in effect from July 1.

The last revision in DA was in March. The government had announced a hike in DA (by four percent for its employees. That was based on 12 monthly averages of the All India Consumer Price Index. Therein, the DA percent had increased from 38 percent to 42 percent.

A statement from the Labour Ministry said, ”Year-on-year inflation of the month stood at 5.57 percent compared to 4.42 percent for the month of May, and 6.16 percent during June 2022.”

The DA is provided to employees and pensioners as a compensation for rising prices. The cost of living increases over a period of time and is reflected through the CPI-IW. This allowance is revised periodically, twice a year.