Government DA Hike: The Department of Expenditure of the Ministry of Finance will prepare a proposal for hike in DA with its revenue implications and place the proposal before the Union Cabinet for approval.
The central government is likely to increase the dearness allowance (DA) for its over one crore employees and pensioners by three per cent to 45 per cent under the agreed formula. At present the DA is 42 per cent. Dearness Allowance for employees and pensioners is decided on the basis of the Consumer Price Index for Industrial Workers (CPI-IW) released by the Labor Bureau every month. Labor Bureau is a branch of the Ministry of Labour.
Shiv Gopal Mishra, general secretary of the All India Railwaymen’s Federation, told news agency PTI, “The CPI-IW for June 2023 was released on July 31, 2023. We are demanding a four per cent hike in dearness allowance. But the government can increase the dearness allowance by three percent. It is likely to be 45 percent.
He further informed that the Department of Expenditure of the Ministry of Finance will prepare a proposal for hike in DA with its revenue implications and place the proposal before the Union Cabinet for approval. The DA hike will be effective from July 1, 2023.
At present, more than one crore central government employees and pensioners are getting 42 per cent dearness allowance. The last revision in DA was done on March 24, 2023 and was effective from January 1, 2023.
