Government likely to increase DA for all govt employees and pensioners

The government may soon increase the DA and DR by 3 per cent for central government employees and pensioners. PM Modi can approve the proposal in a cabinet meeting

A great news for all government employees ahead of the festive season; the government of India may announce an increase in the Dearness Allowance (DA) of all government employees soon. The announcement may come as the country prepares to celebrate Navratri and Diwali festivals, signalling good times for all the employees and pensioners. As per a report by DNA, PM Modi may announce the DA hike in a cabinet meeting.

Government to increase DA by 3 per cent

All the central government employees and pensioners have been waiting for the DA hike since July and there is a high chance that the government may increase the DA from 42 per cent to 45 per cent, which will be effective from July 1. 

 

Once the central government increases the Dearness Allowance, the arrears from the period of July to September will also be added to the October salary.

Navratri festival is all set to begin on October 15, and Dussehra on October 24. This hike in the Dearness Allowance will benefit 47 lakh employees and 68 lakh pensioners, and this will certainly relieve employees from the burden of increasing inflation.

Important decision before the election

The central government's decision to hike the dearness allowance can play a pivotal role as the Election Commission can announce the assembly election dates in five states.

The retail inflation hit a 15-month-high in July, and consequently, the government expected to increase the Dearness Allowance (DA) to 45 per cent. If implemented successfully, the hike will go in effect from July 1, 2023.

How is Dearness Allowance (DA) calculated?

The Dearness Allowance is based on the latest Consumer Price Index for Industrial Workers (CPI-IW). Notably, the DA is given to government employees and DR is given to all the pensioners.

The central government increases the DA and DR twice a year, i.e., January and July. Right now, more than one crore government employees and pensioners are getting a 42 per cent dearness allowance.

The last time the government increased DA was in March 2023, when it was increased by 4 per cent to 42 per cent. Observing the current inflation rate, the government is likely to increase the DA by 3 per cent.