The central authorities revises the DA and DR for staff based mostly on a formulation.
The central authorities revises the DA and DR for staff based mostly on a formulation; the upcoming DA hike can be efficient from January 1, 2023
The central authorities is prone to hike the dearness allowance (DA) and dearness aid (DR) for its staff and pensioners quickly, in keeping with media experiences. The DA is prone to be elevated by 4 share factors to 42 per cent, they stated.
The central authorities revises the DA and DR for staff based mostly on a formulation. Following is the formulation:
Dearness Allowance Percentage = ((Average of All-India Consumer Price Index (Base Year 2001=100) for the previous 12 months -115.76)/115.76)x100.
For Central public sector staff: Dearness Allowance Percentage = ((Average of All-India Consumer Price Index (Base Year 2001=100) for the previous 3 months -126.33)/126.33)x100.
DA and DR are revised twice a yr — January and July. Dearness allowance is given to authorities staff, whereas the dearness aid is for pensioners.
According to an ET report, the typical CPI-IW of the final 12 months is 372.2 at present. Following the formulation, DA is coming to 42.37 per cent. So, the Union authorities is prone to improve the dearness allowance to 42 per cent.
The DA hike can be efficient from January 1, 2023. Currently, over one crore central authorities staff and pensioners are getting 38 per cent dearness allowance.
Last revision in DA was accomplished on September 28, 2022, which was efficient from July 1, 2022. The Centre had elevated DA by 4 share factors to 38 per cent based mostly on the share improve in 12 month-to-month common of All India Consumer Price Index for the interval ending June, 2022.
The DA is supplied to staff and pensioners to compensate them for rising costs.
On the 18-month DA arrears, the Central authorities has clarified that it’ll not be “feasible” to release the 18-month dearness allowance (DA) arrears for the employees, which was stopped during the Covid-19 pandemic. The government had held back three installments of dearness allowance (DA) and dearness relief (DR) in view of the COVID-19 pandemic in 2020. Since this move, Central government employees and the pensioners have been waiting for an update on the pending arrears.
Minister of State for Finance, Pankaj Chaudhary, on Monday said in Lok Sabha that the release of the 18-month arrears of DA and DR wasn’t feasible due to the negative financial impact of the pandemic.
“As the adverse financial impact of pandemic in 2020 and the financing of welfare measures taken by Government had a fiscal spillover beyond FY 2020-21, arrears of DA/DR which mostly pertain to the difficult FY of 2020-21 are not considered feasible,” stated Chaudhary.
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