New Delhi: A 4 per cent increase in dearness allowance (DA) for Central government employees is likely in March, various media reports suggested.
The Union government determines DA hikes based on inflation rate in the country. In the event of high inflation, there is a likelihood of DA raise.
The increments in DA and dearness relief (DR) are influenced by the percentage rise in the 12-month average of All India Consumer Price Index (AICPI) for the fiscal year.
The DA undergoes revision twice annually, generally in January and July. Official announcements regarding these revisions are usually made in March and September/October.
The expected 4% hike, both DA and DR, are set to push DA payout to 50% of basic pay, as the 12-month average of Consumer Price Index for Industrial Workers (CPI-IW) was recorded at 392.83.
The last revision of DA took place in October 2023, resulting in a 4% increase, bringing it to 46% of basic pay.
The decision positively impacted 48.67 lakh Central government employees and 67.95 lakh pensioners.
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