
Media reports suggest that central government employees are likely to witness a 4% increase in their Dearness Allowance (DA) for the six-month period starting January 1. An official announcement regarding this potential hike is expected to be made in March. If the projected increase materializes, it will bring the dearness allowance for central government staff to 50%.
The most recent increment in DA occurred in October 2023, with a 4% raise, raising it to 46% effective from July 1, 2023. Dearness Allowance is a crucial component of the salary structure designed to offset the impact of inflation, thereby enhancing the overall remuneration of employees.
This percentage-based adjustment to the basic pay is a standard practice, typically revised twice a year, with announcements usually made around March and September. The revisions, if approved, are applied from January 1 and July 1.
It’s noteworthy that Dearness Relief (DR), following similar principles, represents the equivalent amount paid to pensioners.
The calculation formula for DA underwent revision in 2006, and it is currently determined based on the percentage rise in the 12-month average of the All India Consumer Price Index (AICPI) until June 2022.