The Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister Narendra Modi, is today, March 7, likely to approve a 4 per cent hike in dearness allowance (DA) for central government employees, according to sources.
After the 4 per cent DA hike, dearness allowance and dearness relief will increase to 50 per cent.
DA and DR are hiked twice a year, with effect from January and July. The quantum of hike in DA and dearness relief (DR) is decided by the central government on the basis of the All-India CPI-IW data.
The 12-month average of the Consumer Price Index for Industrial Workers (CPI-IW) stood at 392.83. As per this, DA is coming to 50.26 per cent of the basic pay.
In the last hike in October 2023, the DA was increased by 4 per cent to 46 per cent. Given the current inflation rate, the next DA hike is expected to be 4 per cent.
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