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Government employees to get a bumper gift before Diwali! Dearness Allowance may be hiked by 4%

By Lokmat English Desk | Updated: September 19, 2023 15:58 IST

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Central government employees and pensioners are in for a treat as the Union Government is likely to hike the dearness allowance (DA) soon.
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It is usually revised in January and July. However, the announcement of the hike in DA and the payout comes a bit later and as we are already in the second half of September and the announcement of the next hike is not very far
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The DA for the central government employees is calculated based on the latest Consumer Price Index for Industrial Workers (CPI-IW).
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At present, the central government employees and pensioners get a 42% dearness allowance.
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DA is calculated as a portion of the basic salary of the central government employees. For central government pensioners, it will be dearness relief. So, when DA increases the salary of the central government employees goes up.
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For instance, a central government gets a basic salary of Rs 36,500 per month. At 42%, his DA was at Rs 15,330. If DA jumps by 4% from July 2023, his DA will be hiked to Rs16,790. So his in-hand salary is likely to be increased by Rs 16,425-Rs 15,330 = Rs 1,460 in a month.
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In 2022, the DA increase, which was applicable from July 1, was announced on September 28
Tags: Dearness allowanceCentral Government
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