The dearness allowance is set to increase by four per cent, with confirmation expected by 31 January, that it has reached 50 per cent. This will be the first rise in dearness allowance for the year 2024. However, the official government announcement regarding this increment is anticipated in March. The adjustment in the allowance will be established after considering the inflation figures at that point.
This increase is only effective for employees upon government approval. Typically, the government sanctions a dearness allowance hike with a two-month gap before it takes effect.
The dearness allowance for Central government employees is determined by the All-India Consumer Price index (AICPI) numbers, which are assessed twice a year. The first assessment covers January to June, while the second covers July to December.
The figures from January to June dictate the dearness allowance increase for July, and the figures from July to December determine the increase for January.
Currently, the AICPI index numbers for November show a 0.7-point increase, reaching 139.1 points. According to the DA calculator, the dearness allowance based on the index is now at 49.68 per cent. Since the decimal digit is over 0.50, it is rounded up to 50 per cent.
The Central government increased the DA by four per cent last year in March 2023, starting in January 2023. This raised the allowance from 38 per cent to 42 per cent, benefiting around 47 lakh government employees and 68 lakh pensioners.
