The central authorities has raised dearness allowance for its over one crore workers and pensioners by 4 per cent, taking the overall to 42 per cent from 38 per cent. Union Minister Anurag Thakur mentioned the centre will spend Rs 12,815 crore to fund the hike in dearness allowance, or DA.
The authorities provides DA to its workers and dearness aid to pensioners to compensate them for rising costs. It is calculated primarily based on the most recent shopper worth index for industrial employees, or CPI-IW.
The DA hike has been utilized retrospectively from January 1, 2023, the federal government mentioned.
“… This will benefit about 47.58 lakh central government employees and 69.76 lakh pensioners. This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission,” the federal government mentioned in an announcement.
The centre final revised DA in September 2022, efficient retrospectively from July 1, 2022. That time, too, it was raised by 4 per cent to 38 per cent.
DA is revised periodically twice a 12 months.