Will DA be hiked by 3-4% this July?

The dearness allowance was last revised in March, and came into effect from 1 January, 2023.

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The dearness allowance (DA) was increased by four per cent in March 2023, by the Central government. This hike came into effect from 1 January, 2023. Now, it is reported that the Centre is likely to increase the DA yet again by three to four per cent, with effect from 1 July, 2023. This allowance is a compensation for employees for rising prices, and it is revised twice in a year, in January and July.

Following the last revision in DA in March, the DA of Central government staff had gone up to 42 per cent. The hike before the March 2023 one had happened in September of 2022. This four per cent hike had been implemented with effect from July 2022.

If the July hike comes into effect, over 47 lakh employees and more than 69 lakh pensioners will be benefitted. The DA is granted basis the basic pay of the staff, whereas the dearness relief (DR) is given to pensioners basis the basic pension.

Meanwhile, in West Bengal, state government employees have been seeking dearness allowance at par with Central government rates. They even took out a huge rally in Calcutta on 6 May 2023, as part of the sit-in demonstration that they had begun 100 days ago.

About 50,000 people from across the State participated in the rally and gathered outside of chief minister Mamata Banerjee’s residence.

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