Central employees-pensioners: Government can increase dearness allowance by 4%, know how much DA will increase

7th Pay Commission: The central government can give a big gift to the central employees and pensioners. An increase in Dearness Allowance (Dearness Allowance) of more than one crore government employees and pensioners can be announced in the cabinet meeting to be chaired by Prime Minister Narendra Modi on Friday, March 17, 2023 .

The central government can increase the dearness allowance from 38 per cent to 42 per cent. That means dearness allowance can be increased by 4 percent. The cabinet meeting is going to be held on Friday evening at 6.30 pm and it is believed that the increase in dearness allowance may be approved in this meeting.

Every year in the month of March, the central government can increase the dearness allowance of central employees and pensioners so that they can be relieved from inflation. The Central Government increases the Dearness Allowance ie Dearness Allowance and Dearness Relief ie Dearness Relief by reviewing it twice a year. The last time on 28 September 2022, for 8 months from 1 July 2022 to 28 February 2023, 4 percent dearness allowance was increased.

But now to provide relief, the Central Government can increase the Dearness Allowance (DA) for its more than one crore employees and pensioners by four percentage points from the existing 38 per cent to 42 per cent. Dearness Allowance for employees and pensioners is calculated on the basis of the Consumer Price Index for Industrial Workers (CPI-IW) issued by the Labor Bureau.

At present, 38 percent dearness allowance is being given to central employees and pensioners. But in view of the backbreaking inflation, if the government increases it by 4 percent to 42 percent, central employees and pensioners will get a big relief from inflation. According to statistics, if the central government increases the dearness allowance, then 47 lakh employees and 68 lakh pensioners will benefit from this decision.

How much DA will increase

Due to increase in dearness allowance, there will be an increase in the salary of central employees. For example, suppose if the basic salary of a central employee is Rs.25500. According to 38 percent DA, now Rs 9690 is available. If the DA becomes 42 per cent, the dearness allowance will increase to Rs 10,710. Means the salary will increase by Rs 1020 every month.