Centre To Increase Dearness Allowance To 42 Per Cent

Delhi, 5th February 2023: According to the methodology set forth for this reason, the Center is scheduled to raise the dearness allowance (DA) for its more than one crore employees and retirees by four percentage points, to 42 per cent from the current 38 per cent.

The latest Consumer Price Index for Industrial Workers (CPI-IW), released each month by the Labour Bureau, a division of the Labour Ministry, serves as the basis for calculating the Daily Allowance (DA) for employees and retirees. According to The Mint, the Labour Ministry raises the DA in light of the inflation of numerous essential items in the AICPI (All India Consumer Price Index) index.

According to the agreed-upon formula, the Center will enhance the dearness allowance (DA) for its more than one crore employees and pensioners by four percentage points, from the current 38 to 42 per cent. Every month, the Labour Bureau, a division of the Labour Ministry, releases the most recent Consumer Price Index for Industrial Workers (CPI-IW), which is used to calculate the Daily Allowance (DA) for employees and pensioners. In light of the inflation of numerous major items in the AICPI (All India Consumer Price Index) index, the Labour Ministry raises the DA, according to a Mint article.