Centre announces 4% hike in dearness allowance for Govt employees

Guwahati: The amount of dearness allowance that the central government distributes to its more than one crore employees and retirees was increased by 4%, raising the whole amount to 42% from 38%.

Union Minister Anurag Thakur claims that the government will spend Rs 12,815 crore to pay for the increase in the dearness allowance.

The government offers DA and dearness relief to make up for growing expenditures for its workers and pensioners. It is calculated using the most recent CPI-IW, or consumer price index for industrial workers.

“… This will help around 47.58 lakh focal government workers and 69.76 lakh retired people. This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission,” stated the central government in a statement.

According to the government, the DA hike became effective on January 1, 2023.

The centre made the most current DA modification in September 2022, and it took effect on July 1, 2022. At that time, it was also raised by 4% to 38%.

A review of the DA takes place every two years.