GG News Bureau
New Delhi, 25th March. The central government increased the dearness allowance for its over one crore employees and pensioners by 4%, bringing the total to 42% from 38%.
Union Minister Anurag Thakur announced that the government will spend Rs 12,815 crore to fund the increase in dearness allowance, or DA.
To compensate for rising prices, the government provides DA to its employees and dearness relief to pensioners. It is based on the most recent consumer price index for industrial workers, or CPI-IW.
The DA hike has been applied retrospectively from January 1, 2023, the government said.
“… This will benefit about 47.58 lakh central government employees and 69.76 lakh pensioners. This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission,” the government said in a statement.
The centre last revised DA in September 2022, with retroactive effect from July 1, 2022. It was raised by 4% to 38% at that time as well.
DA is updated at least twice a year.
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