As several states have already increased their Dearness Allowance or DA for Government employees, the Central Government is also expected to increase it by 4 percent.
Central Government is Likely to Increase DA
The anticipation of a possible DA hike has surged with the recent release of the June 2023 AICPI figures. The Centre unveiled the latest AICPI Index data, showing a substantial leap in numbers. In June 2023, the index skyrocketed to 136.4 points, marking a notable increase from May’s index, which stood at 134.7 points. This upward movement accounted for a total rise of 1.7 points. As usual, the percentage of the DA hike for government employees is hinged upon the fluctuations in the AICPI Index. Given the latest economic indicators, the prospects for a positive adjustment in the allowance seem brighter now.
How Many Times DA is Increased?
Attention all government employees! It’s essential to keep in mind that the DA experiences a biannual increase, taking place in both January and July. Recently, in March 2023, the latest DA hike was officially announced, and it took effect from January 1, 2023. During this adjustment, the DA witnessed a significant rise of 4 percent, reaching an impressive 42 percent. Stay informed about these updates to ensure you’re current with your entitlements!
When Can We Expect a New DA Hike?
As per the latest information circulating in the media, there are strong indications that the Central Government is gearing up to grant a substantial 4 percent hike in the DA. Should this plan come to fruition, the DA percentage will soar to an impressive 46 percent. The eagerly awaited official announcement on this matter is expected to be made either in September or October.
It’s crucial to be aware of the distinction between the DA, which caters to government employees, and the DR, specially designed for pensioners. The upcoming DA hike is anticipated to boost the financial situation of approximately 47.58 lakh central government employees and 69.76 lakh pensioners, brightening their outlook in these challenging times.