Currently, over one crore central government employees and pensioners are getting a 42 percent dearness allowance.
New Delhi: After the All India Consumer Price Index (AICPI) data was released by the Labour Department, it is now expected that the Centre will increase the Dearness Allowance of government employees anytime soon. A report by Zee News claimed that the DA is likely to be increased to 46% this time.
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What June 2023 AICPI Index Shows
The figures for June 2023 AICPI index showed that there has been a big jump in the index. The AICPI June index has reached 136.4 points as compared to the index number in May which was 134.7 points. A total increase of 1.7 points has been registered in June 2023.
Talking to news agency PTI, All India Railwaymen Federation General Secretary Shiva Gopal Mishra said, “The CPI-IW 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 percent”.
He further stated that the expenditure department of the Finance Ministry will formulate a proposal to hike DA along with its revenue implication and will put up the proposal before the Union Cabinet for approval.
DA May Increase To 46%
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Media reports speculate that the Central employees are likely to get Dearness Allowance at the rate of 46 percent. However, it will be cleared when the announcement regarding the same will be made by the Centre in September.
If it is increased, the DA hike will be effective from July 1, 2023. Currently, over one crore central government employees and pensioners are getting a 42 percent dearness allowance. Last time, the DA was revised on March 24, 2023, and was effective from January 1, 2023.
Last time, the Centre had increased DA by four percent to 42 percent based on the percentage increase in the 12 monthly average of the All India Consumer Price Index for the period ending December 2022.
It should be noted that the DA is provided to Central government employees and pensioners to compensate them for rising prices. The DA of central government employees is revised twice a year – the first one is given from January to June, and the second one comes from July to December.
How Much Salary Will Increase?
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Right now, the central government employees are getting 42 percent DA hike. After the hike, the DA will increase to 46 percent. On a basis of the basic salary of Rs 18,000, the annual DA increase will be Rs 8640 while on a basic salary of Rs 56,900, the annual DA increase will be 27,312
