Union Minister Anurag Thakur on Friday announced that Dearness Allowance (DA) of government employees will see a 4% jump taking the total to 42% from 38 %. The minister said that to ensure the hike, Centre has approved an spending of Rs 12,815 crore.
The release was approved by the Cabinet on Friday for Central Government employees and Dearness Relief to Pensioners, due from January 1, 2023. This move is set to benefit 47.58 lakh employees and 69.76 lakh pensioners.
This move is set to benefit 47.58 lakh employees and 69.76 lakh pensioners.
Apart from the hike in Dearness Allowance, Centre on Saturday also approved Minimum Support Price (MSP) for Raw Jute at Rs 5,050 per quintal for 2023-24 season.
This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.
The central government revises the DA and DR for employees based on a formula. Following is the formula:
Dearness Allowance Percentage = ((Average of All-India Consumer Price Index (Base Year 2001=100) for the past 12 months -115.76)/115.76)x100.
For Central public sector employees: Dearness Allowance Percentage = ((Average of All-India Consumer Price Index (Base Year 2001=100) for the past 3 months -126.33)/126.33)x100.
DA and DR are revised twice a year — January and July. Dearness allowance is given to government employees, while the dearness relief is for pensioners.
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