Good news! Central Govt employees likely to get 4% DA hike soon

The Narendra Modi-led central government is also likely to hike Dearness Allowance (DA) by 4 per cent for its employees, said media reports. Central government is now mulling over increasing the DA following the footstep of different state governments, who recently hiked their dearness allowances (DA) for their employees.

It is to be noted here that the Central government’s DA is hiked twice a year, i.e in January and July. The DA was hiked last in March 2023 but came into effect from January 1, 2023. The DA was raised by 4 per cent from 38 per cent to 42 per cent.

Now, again the central government is likely to hike the DA by 4 per cent in September or October, following which the DA will increase to 46 per cent. This would benefit 47.58 lakh central government employees and 69.76 lakh pensioners.

It is to be noted here that Madhya Pradesh and Odisha government increased DA for their employees by 4 per cent each. Before that, Karnataka also had hiked the DA by 4 per cent with a retrospective effect from January 1, 2023.

Here’s how the DA Hike is calculated?

The central government revises the DA and DR for employees based on the following formula:

• Dearness Allowance Percentage = ((Average of All-India Consumer Price Index (Base Year 2001=100) for the past 12 months -115.76)/115.76)x100.
• For Central public sector employees: Dearness Allowance Percentage = ((Average of All-India Consumer Price Index (Base Year 2001=100) for the past 3 months -126.33)/126.33)x100.

(With input from www.news18.com)