The impatient wait of thousands of central government employees and pensioners for the next round of priceless allowance (DA) and priceless relief (DR) hike may soon come to an end. The Center is likely to announce the second DA hike for FY23 within a month.
According to the latest media reports quoting government sources, the announcement on the DA hike could come as early as the end of September or around the Navratri festival period. This time the Union Cabinet is expected to agree to increase the DA by 3%. Such a move will increase the DA figure for central government employees from the current 42% to 45%. The second DA increase in 2023, when announced, will take effect from July 1, 2023. While employees want a 4% DA increase, the number is expected to remain at 3%. However, this will be a great incentive for central government employees to fight inflation.
The DA hike for central government employees and pensioners is calculated based on the Consumer Price Index of Industrial Workers (CPI-IW) data, released monthly by the Bureau of Labor.
Last month, Indian Railway Employees Union General Secretary Shiva Gopal Mishra told PTI: “The CPI-IW for June 2023 was announced on July 31, 2023. We demand a 4 percentage point increase in the unlimited subsidy. But the increase in overdue debt allowance only amounted to more than 3 percentage points. The government has no plans to increase AD beyond the decimal point. Therefore, DA needs to be increased by 3 percentage points to reach 45%.
