SRINAGAR: The central government is set to announce a DA increase for its employees between Navratri and Diwali. The DA hike, effective from July 1, 2023, could exceed the initially reported 3 per cent, News18 reported.
Based on the latest Consumer Price Index for Industrial Workers (CPI-IW), central government employees may see a 4 per cent increase, raising the dearness allowance to 46 per cent.
Government employees receive DA, while pensioners receive DR. These allowances are adjusted twice annually, in January and July, benefiting over one crore central government employees and pensioners who currently receive a 42 per cent dearness allowance.
In the previous hike in March 2023, DA increased by 4 per cent. Given current inflation rates, the next hike, as per News18 is also anticipated to be 4 per cent, according to various reports.
Several state governments, including Madhya Pradesh, Odisha, Karnataka, Jharkhand, and Himachal Pradesh, have recently increased dearness allowances for their employees.
The DA and DR hike is determined by the percentage increase in the 12-month average of the All India Consumer Price Index (AICPI) until June 2022. While the central government revises allowances on January 1 and July 1 each year, the official announcement usually comes in March and September.
In 2006, the central government revised the formula for calculating DA and DR for its employees and pensioners.
Dearness Allowance Percentage = ((Average of All-India Consumer Price Index (Base Year 2001=100) for the past 12 months – 115.76) / 115.76) x 100.
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) x 100.
