Dearness Allowance Hike for Central Govt Employees - What’s Expected

Photos: Pixabay Photos: Pixabay

A festive treat in the form of Dearness Allowance hike is expected to come to central government employees soon.

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Various reports have suggested that the Central Government may hike the DA rate by 4%

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However, it was earlier expected that the Government may hike the DA rate by 3%.

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If a 4% hike takes place, Central Government Employees’ effective DA rate will jump to 46% from the current 42%.

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The rate of DA is decided on the basis of All India Consumer Price Index for Industrial Workers (AICPI-IW) data.

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According to the AICPI-IW data and the formula recommended by the 7th Pay Commission, the DA hike could be around 4%.

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It is expected that the Government may announce the new DA rate to be effective from 1 July 2023 by this month’s end or in early October.

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