4% Increase in Dearness Allowance from July 2023
The Union Cabinet is expected to approve the enhancement of Dearness Allowance (DA) by 4% from July 2023. This approval is usually given by the Cabinet Committee of Economic Affairs in the second week of September, based on the average AICPIN for Industrial Workers for the previous 12 months.
The current rate of DA is 42%, and with the proposed increase, it will be raised to 46% from 1st July 2023. This hike in DA is aimed at providing relief to government employees and pensioners, considering the rising cost of living.
The DA formula takes into account the average All India Consumer Price Index for Industrial Workers (AICPIN) for the period from July of the previous year to June of the current year. Based on this calculation, it has been determined that a 4% increase in DA is necessary to maintain parity with the cost of living.
The Government of India is expected to approve this DA hike in the upcoming cabinet meeting, which is scheduled to be held this week. Once approved, the increased DA will benefit millions of government employees and pensioners across the country.
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