In a bonanza for central government employees, the Union government is likely to announce a 4 per cent DA hike in March, according to an ET report. After the 4 per cent increase, dearness allowance and dearness relief will increase to 50 per cent.
The 12-month average of the Consumer Price Index for Industrial Workers (CPI-IW) stood at 392.83. According to the ET report, DA is coming to 50.26 per cent of the basic pay.
The quantum of hike in DA and dearness relief (DR) is decided by the central government on the basis of the All-India CPI-IW data. DA is given to government employees, while DR is given to pensioners. DA and DR are hiked twice a year — January and July.
In the last hike in October 2023, the DA was increased by 4 per cent to 46 per cent. Given the current inflation rate, the next DA hike is expected to be 4 per cent.
According to the official data, there are 47.58 lakh central government employees and 69.76 lakh pensioners. After the upcoming DA hike, these employees and pensioners will be benefitted.
Formula For central government employees:
Dearness Allowance per cent = ((Average of AICPI (Base Year 2001=100) for the past 12 months -115.76)/115.76) *100
AICPI stands for All India Consumer Price Index.
Formula For public sector (central government) employees:
Dearness Allowance per cent = ((Average of AICPI (Base Year 2016=100) for the past 3 months -126.33)/126.33) *100
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