Govt likely to hike dearness allowance by 3% to 45%, decision soon

The hike in DA comes on the back of the latest Consumer Price Index for Industrial Workers (CPI-IW) which is released by the Labour Bureau every month.

The Centre is likely to increase the dearness allowance (DA) for more than one crore government employees and pensioners by 3%. With the latest hike, the total percentage of DA for government employees and pensioners will reach 45% from the current 42%. The hike in DA will come on the back of the latest Consumer Price Index for Industrial Workers (CPI-IW) which is released by the Labour Bureau every month.

“The CPI-IW for June 2023 was released on July 31, 2023. We are demanding a four percentage point hike in dearness allowance. But the dearness allowance hike works out to be a little over three percentage points. The government does not factor in hiking DA beyond the decimal point. Thus DA is likely to be increased by three percentage points to 45 percent,” All India Railwaymen Federation General Secretary Shiva Gopal Mishra said while talking to news agency PTI.