As the Lok Sabha elections loom, the Modi government has made a strategic move to win favor among various sections of society, with a special focus on central government employees. In a potential development set to bring joy to government job holders, there are strong indications that the central government may announce a 4% increase in Dearness Allowance (DA) for employees working under its institutions and services. If implemented, this will elevate both Dearness Allowance and Dearness Relief to 50%, surpassing the current rate of 46%.
The decision is grounded in the average of the Consumer Price Index for Industrial Workers (CPI-IW) over the last 12 months, standing at 392.83. With this proposed increase, the DA is expected to reach 50.2%. It’s important to note that DA and Dearness Relief are revised biannually, in January and July.
Presently, over 1 crore government employees benefit from Dearness Allowance under the Seventh Pay Commission.
The timing of this anticipated increase is significant, as it is likely to be implemented from March 2024, just ahead of the upcoming elections. This move is expected to positively impact the Take Home Salary of employees, potentially resulting in an increase of around Rs 2140 for an individual with a salary of Rs 53,500.
