Centre May Hike Dearness Allowance By 3% For Govt Employees

New Delhi: The Centre is likely to increase the dearness allowance (DA) for its over one crore employees and pensioners by three percentage points to 45 per cent.

“The Consumer Price Index for Industrial Workers 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,” All India Railwaymen Federation General Secretary Shiva Gopal Mishra told PTI.

The DA for employees and pensioners is worked out on the basis of the latest CPI-IW brought out by the Labour Bureau, a wing of the Labour Ministry, every month.

The hike will be effective from July 1, 2023.

Currently, over one crore central government employees and pensioners are getting a 42 per cent DA, which compensate them for rising prices.