Centre likely to hike dearness allowance by 3%

Govt. likely to increase DA for over 1 crore employees & pensioners by 3% to 45% from 42%, effective from July 1, 2023. Cost of living reflected in CPI-IW, allowance revised twice a year to compensate for rising prices.

The central government is likely to increase the dearness allowance (DA) for its over one crore employees and pensioners by three percentage points to 45% from the existing 42% as per the agreed formula for the purpose.

The dearness allowance for employees and pensioners 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 is a wing of the Labour Ministry.

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 further explained 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.

The DA hike will be effective from July 1, 2023.

Presently, over one crore central government employees and pensioners are getting a 42 per cent dearness allowance.