Govt likely to hike dearness allowance by 3% to 45%, decision soon
dearness allowance hike works out to be a little over three percentage points. The government does not factor in hiking DA beyond the decimal point.
Thus DA is likely to be increased by three percentage points to 45 percent," All India Railwaymen Federation General Secretary Shiva Gopal Mishra said while talking to news agency PTI. The latest hike in DA will be effective from 1 July 2023 and will only be applicable after the expenditure department of the finance ministry drafts a proposal for the concerned rate hike and submit it to the Union Cabinet for approval.
Previously, the Centre increased the dearness allowance by 4% on 24 March 2023 which was based on 12 monthly averages of the All India Consumer Price Index. The percentage of DA increased from 38% to 42% then.
According to the data released by Labour Bureau, the retail inflation for industrial workers rose to 5.57% during June 2023. "Year-on-year inflation for the month stood at 5.57 percent compared to 4.42 percent for the previous month (May) and 6.16 percent during the corresponding month (June 2022) a year before," a statement from Labour Ministry said.
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