The central government can increase the dearness allowance (DA) by four percentage points from the existing 38 percent to 42 percent for its more than one crore employees and pensioners. A formula has been agreed upon for this purpose.
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The central government can increase the dearness allowance (DA) by four percentage points from the existing 38 percent to 42 percent for its more than one crore employees and pensioners. A formula has been agreed upon for this purpose. Dearness Allowance for employees and pensioners is calculated on the basis of the Consumer Price Index for Industrial Workers (CPI-IW) released by the Labor Bureau every month. The Labor Bureau is part of the Ministry of Labour.
Shiv Gopal Mishra, general secretary of the All India Railwaymen’s Federation, said that the CPI-IW for December 2022 was released on January 31, 2023. He said that the increase in dearness allowance works out to 4.23 per cent. But the government does not take decimals into DA. In such a situation, there can be an increase of four percentage points in DA.
It can be increased from 38 percent to 42 percent. He told that the Expenditure Department of the Finance Ministry will make a proposal to increase DA.
In this, its effect on revenue will also be told. This proposal will be placed before the Union Cabinet for approval. The increase in dearness allowance will be applicable from January 1, 2023.
This story is being updated…
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