DA Hike Coming In March? Dearness Allowance For Central Staff To Be Over 50 pc Of Basic Salary

DA hike news: The Government of India is expected to hike the dearness allowance (DA) for central employees by 4 per cent in March. Presently, the averaged data over 12 months stands at 392.83. Based on these figures, the DA will represent 50.26 per cent of the basic salary.
DA hike news

The Government of India is expected to hike the dearness allowance (DA) for central employees by 4 per cent in March (Pic: Canva Pro)

DA hike news: The Government of India is expected to hike the dearness allowance (DA) for central employees by 4 per cent in March, Economic Times said citing reports.
After this proposed increase, the dearness allowance and dearness relief (DR) are anticipated to surge past 50 per cent. The central government's protocol for adjusting this allowance hinges on the Consumer Price Index (CPI) data tailored for industrial workers. Presently, the averaged data over 12 months stands at 392.83. Based on these figures, the DA will represent 50.26 per cent of the basic salary.
The Labour Bureau, functioning under the Ministry of Labour, is tasked with the monthly publication of the CPI for Industrial Workers (CPI-IW) data. It's essential to note that DA is a cost of living adjustment allowance paid to employees, and DR is a similar adjustment for pensioners, helping them cope with inflation. Customarily, there is a semi-annual review and potential increase of DA and DR — occurring in January and July.
The last adjustment was made in October 2023, where the DA saw an augmentation by 4 per cent, reaching 46 per cent. In light of prevailing inflation rates, the forthcoming increment in DA is anticipated to be another 4 per cent. These impending hikes are planned to be applied retroactively starting from January 1, 2024, which means that employees and pensioners will receive arrears for the months that have elapsed.
The established formula for the calculation of DA and DR is expressed as follows: 7th Central Pay Commission (CPC) DA percentage is determined by the following equation:
7th CPC DA% = [{12 month average of AICPI-IW (Base Year 2001=100) for the last 12 months – 261.42}/261.42x100]
This specialised formula applies exclusively to those central government workers and pensioners who receive their pay based on the recommendations of the 7th Pay Commission.
End of Article
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