New Delhi: Good news is in store for Central government employees as the Centre may soon announce a hike in dearness allowance (DA) and fitment factor, according to media reports. The DA, which is provided to employees and pensioners to compensate them for rising prices, is revised twice a year — January and July.
After the hike in the fitment factor, the minimum salary of government employees is expected to see a rise from Rs 18,000 to Rs 26,000 for central government employees, according to reports, reported News 18, saying there is no official word on this.
The DA was revised by 4 per cent in March last year. It became effective from January 1, 2023. After the 4 per cent hike, the DA of central government employees increased to 42 per cent. Now, if the government raises DA by 4 per cent this time also, the DA will increase to 46 per cent, the report added.
Dearness Allowance Percentage = ((Average of All-India Consumer Price Index (Base Year 2001=100) for the past 12 months -115.76)/115.76)x100.
For Central public sector employees: Dearness Allowance Percentage = ((Average of All-India Consumer Price Index (Base Year 2001=100) for the past 3 months -126.33)/126.33)x100.
