New Delhi, February 2, 2024: The Central government is likely to increase the dearness allowance (DA) for its over one crore employees and pensioners by 4 percentage from the existing 46 per cent to 50 per cent before implementation of the Model Code of Conduct for the upcoming Lok Sabha elections likely to be conducted in April/May.
The dearness allowance for employees and pensioners is worked out on the basis of the latest Consumer Price Index for Industrial Workers (CPI-IW) brought out by the Labour Bureau for December 2023.
The DA hike will be effective from from January 1, 2024.
Presently, over one crore central government employees and pensioners are getting a 46 per cent dearness allowance.
The last revision in DA was done on October 18, 2023, and was effective from July 1, 2023.
The Centre had increased DA by four percentage to 46 per cent based on the percentage increase in the 12 monthly average of the All India Consumer Price Index for the period ending June 2023.
The DA is provided to employees and pensioners to compensate them for rising prices.
The cost of living increases over a period of time and is reflected through CPI-IW. The allowance is revised periodically twice a year.
When DA reaches 50%, following allowances and pay components are increased as recommended by the 7th Pay Commission.
- House Rent Allowance (HRA)
- Children Education Allowance
- Special Allowance for Child Care
- Hostel Subsidy
- TA on Transfer
- Upper Ceiling on Gratuity Amount
- Dress Allowance
- Mileage Allowance for Own Transport
- Daily Allowance
