DA Hike At present, more than one crore central government employees and pensioners were getting DA and DR at the rate of 38 percent. The last revision in DA was done on 28 September 2022. It has been revised again after about six months.
DA Hike: Giving a big relief to the central government government employees and pensioners, dearness allowance has been increased. DA hike for government employees was announced in the cabinet meeting today.
The central government has increased the dearness allowance for its more than one crore employees by 4 per cent, from 38 per cent to 42 per cent. Union Minister Anurag Thakur said the Center will spend Rs 12,815 crore to meet the hike in Dearness Allowance, or DA. The government has said that the 1 DA hike has been implemented from January 1, 2023.
The wait is over
Let us tell you that since February this year, it was being speculated that the central government may increase the DA by four percentage points from the existing 38% to 42% for its more than one crore employees.
The hike in DA or DR for employees and pensioners is based on the Consumer Price Index for Industrial Workers (CPI-IW) released by the Ministry of Labor every month. According to the latest data, retail inflation eased marginally to 6.44% in February, mainly due to a marginal decrease in the prices of food and fuel articles, although it remained below the RBI’s 6% level for the second month in a row. Stayed above
As per the data released on March 13, the CPI based inflation stood at 6.52% and 6.07% in February 2022.
DA will be applicable from this day
The hike in DA will be effective from 1 January 2023. Currently, more than one crore central government employees and pensioners are getting 38% DA. Let us tell you that the last revision on DA hike was done on 28 September 2022 and it was considered effective from 1 July 2022.
Why DA is increased
DA is updated for the convenience of government employees and pensioners, to compensate for rising prices. The cost of living and living increases over time and is tracked through the CPI-IW. Dearness Allowance and Dearness Relief are revised from time to time twice a year.
Meanwhile, the stir in many states regarding the DA hike is intensifying. West Bengal government employees are agitating for the demand of increase in dearness allowance at par with central government employees. Earlier the Madhya Pradesh government approved a 4% increase in DA allowances and pensioners from January 1, 2023 with retrospective review.
