However, the administration does not consider increasing DA beyond the decimal point. As a result, DA is anticipated to be raised by four percentage points to 42%.
Digital Desk: According to the agreed-upon methodology, the central government is set to enhance dearness allowance (DA) for its over one crore employees and pensioners by four percentage points to 42 percent from the current 38 percent.
The dearness allowance for employees and pensioners is calculated using the most recent Consumer Price Index for Industrial Workers (CPI-IW) published by the Labour Bureau each month. The Labour Bureau is a branch of the Ministry of Labour.
All India Railwaymen Federation General Secretary Shiva Gopal Mishra told PTI, "On January 31, 2023, the CPI-IW for December 2022 was released. The increase in the dearness allowance is 4.23 percent. However, the administration does not consider increasing DA beyond the decimal point. As a result, DA is anticipated to be raised by four percentage points to 42%."
He further added that the expenditure section of the Finance Ministry will create a proposal to enhance DA along with its income consequence and will put forward the proposal before the Union Cabinet for approval.
The DA increase will take effect on January 1, 2023.
Presently over one crore central government employees and pensioners are getting 38 per cent dearness allowance.
The most recent DA modification was completed on September 28, 2022, and it became effective on July 1, 2022.
The Centre raised DA by four percentage points to 38% based on the percentage rise in the 12-month average of the All India Consumer Price Index for the fiscal year ending June 2022.
Employees and retirees receive DA to compensate them for rising prices. The cost of living rises over time, and this is represented in the CPI-IW.
The allowance is reviewed at least twice a year.
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