The center has increased the high cost allowance (DA) by 4%
New Delhi:
The central government increased the dearness allowance for its more than a crore of employees and pensioners by 4%, bringing the total to 42% from 38%. Union Minister Anurag Thakur said the center would spend Rs 12,815 crore to fund the rise in High Cost Allowance, or DA.
The government grants DA to its employees and a reduction in the high cost to retirees to compensate them for the rise in prices. It is calculated based on the latest Consumer Price Index for Industrial Workers, or CPI-IW.
The AD hike was applied retrospectively from January 1, 2023, the government said.
“… This will benefit about 47.58 lakh central government employees and 69.76 lakh pensioners. This increase is in line with the accepted formula, which is based on the recommendations of the 7th Central Wage Commission,” the government said in a statement.
The center last revised the DA in September 2022, with retroactive effect from July 1, 2022. This time too, it was increased from 4% to 38%.
DA is reviewed periodically twice a year.