New Delhi: The central government is likely to increase the Dearness Allowance (DA) for its over one crore employees and pensioners by four percentage points to 42 per cent from the current 38 per cent. Dearness Allowance for employees and pensioners is calculated on the basis of the latest Consumer Price Index for Industrial Workers (CPI-IW) released by the Labor Bureau every month. The Labor Bureau is a part of the Ministry of Labour.
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Speaking to PTI, Shiv Gopal Mishra, general secretary of the All India Railwaymen’s Federation, said, “The CPI-IW for December 2022 was released on January 31, 2023. There is a 4.23 per cent increase in dearness allowance. But the government does not Is.” Factor in carrying DA beyond the decimal point. Thus DA is likely to be increased by four percentage points to 42 per cent.”
He further informed that the Department of Expenditure of the Finance Ministry will prepare a proposal to increase DA with its revenue implications and place the proposal before the Union Cabinet for approval. The DA hike will be effective from January 1, 2023.
At present, more than one crore central government employees and pensioners are getting 38 per cent dearness allowance. The last revision in DA was done on September 28, 2022, which was effective from July 1, 2022. The Center had raised DA by four percentage points to 38 per cent based on the percentage increase in the 12 monthly average of all. India Consumer Price Index Numbers for the period ending June, 2022. DA is provided to the employees and pensioners to compensate for the rising prices. The cost of living rises over time and is reflected through the CPI-IW. The allowance is revised from time to time twice a year.