Centre announces 4 per cent hike in dearness allowance for government employees

The central government increased the dearness allowance it provides to its more than one crore employees and pensioners by 4 per cent, bringing the total to 42 per cent from 38 per cent.

According to Union Minister Anurag Thakur, the government will spend Rs 12,815 crore to fund the hike in dearness allowance.

In order to compensate its employees and pensioners for rising costs, the government provides DA and dearness relief. The most recent consumer price index for industrial workers, or CPI-IW, serves as the basis for its calculation.

"... 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.

The government stated that the DA increase took effect on January 1, 2023.

The most recent DA revision was made by the center in September 2022, with an effective date of July 1, 2022. It was also increased by 4% at that time to 38%.

The DA is reviewed once every two years.

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