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The central government is preparing to give a big gift to its more than 10 lakh employees and retired individuals. According to the government’s proposed formula, the Dearness Allowance (DA) for nursing staff could be increased from the current 42% to 45%. This fixed monetary benefit adjustment is based on the Consumer Price Index-Industrial Workers (CPI-IW) published monthly by the Labor Office for the consumption of industrial workers. The All India Federation of Railwaymen’s General Secretary, Shiv Gopal Mishra, has mentioned that the CPI-IW for June 2023 was released on July 31, 2023. They are demanding a four percent increase in the dearness allowance. However, there is a possibility of a three percent increase in the shortfall benefit from the government.
The expectation is that it will remain at 45%. The Finance Ministry’s Expenditure Department will prepare the proposal for increasing DA. It will then be presented for approval before the Central Cabinet. The increased DA will come into effect from July 1, 2023. It is worth noting that the last revision was made on March 24, 2023, and it was implemented from January 1, 2023.
Earlier in March, there was an increase in the salary. DA was delayed from January 1. The DA was increased by four percent, reaching 38 to 42%. They mentioned that it can now be implemented from July 1. Employees will also receive two months’ arrears. The DA rate will be less than the seventh pay commission. On the other hand, the DA rate will be separate for employees receiving salaries from the old payroll commission.
Salary can increase significantly. For instance, if a central government employee has a basic salary of Rs. 20,000, a four percent increase in DA will result in an additional Rs. 800. The benefit of the DA increase will not only be limited to current employees but also available to retired individuals.