The Union Cabinet has approved a 4% hike in Dearness Allowance (DA) and Dearness Relief (DR) for central government employees and pensioners. This salary increase will bring relief to around 48 lakh central government employees and 67 lakh pensioners.

The DA and DR are calculated based on the Consumer Price Index for Industrial Workers (CPI-IW), which measures changes in the prices of essential commodities. The increase of 4% reflects the combined impact of the rise in retail inflation.

DA Hike 7th Pay Commission: DA, DR hiked by 4% for central govt employees and pensioners; how much salary will increase

Central government employees and pensioners will be pleased to know that the release of the increased DA and DR will take effect from July 1, 2023. This timely release will help alleviate the effects of rising prices and the cost of living.

The DA hike will result in a significant increase in the monthly earnings of central government employees and pensioners. This salary increase will especially benefit those at the lower levels of the pay scale. It is a positive step towards ensuring the well-being and financial stability of all central government employees and pensioners.

In conclusion, the 4% hike in Dearness Allowance and Dearness Relief for central government employees and pensioners is a much-awaited and welcome decision by the Union Cabinet. The increase in salary will provide much-needed relief and help in combating the effects of inflation and rising prices.

Festive bonus: Cabinet approves hike in DA to 46% from 42% for Central govt employees, pensioners

With this, the DA for central government employees will increase to 46 per cent from the existing 42 per cent.

The Union Cabinet on Wednesday approved a 4 percent Dearness Allowance (DA) hike for central government employees.

With this decision, the DA for central government employees will increase to 46 per cent from the existing 42 per cent.

In March this year, the Union Cabinet increased the dearness allowance and dearness relief by 4 per cent to 42 per cent.

Amid the ongoing festive season, the Union Cabinet on Wednesday approved a 4 per cent Dearness Allowance (DA) hike for central government employees, Union Minister Anurag Thakur said on Wednesday.

With this decision, the DA for central government employees will increase to 46 per cent from the existing 42 per cent. This hike would be effective from July 1, 2023.

In March this year, the Union Cabinet increased the dearness allowance and dearness relief by 4 per cent to 42 per cent.

The Union Cabinet, chaired by the Prime Minister, Shri Narendra Modi has approved to release of an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.07.2023 representing an increase of 4% over the existing rate of 42% of the Basic Pay/Pension, to compensate against price rise. This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.
The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs.12,857 crore per annum. This will benefit about 48.67 lakh Central Government employees and 67.95 lakh pensioners.

Dearness Allowance hike in October: What affects DA Hike?

The Dearness Allowance (DA) for central government employees and pensioners is set to receive a 4% hike in October. This increase is based on various factors that affect the DA hike. The calculation of the DA is done using the Consumer Price Index Numbers for Industrial Workers (CPI-IW index), which reflects the cost of living.

The CPI-IW index measures changes in retail prices and is used to determine the DA hike. It takes into account various factors such as inflation, price rise, and the cost of essential commodities. The index is calculated based on the average prices of certain items consumed by industrial workers in various selected centres across the country.

The DA hike is announced twice a year, in January and July. The October hike is based on the average increase in the CPI-IW index from January to June. This 4% hike in the DA is a result of the combined impact of inflation and price rise.

The increase in DA is significant for central government employees and pensioners as it directly affects their monthly earnings. It helps them cope with the rising cost of living and ensures that their salaries keep up with inflation. The DA hike is an important measure taken by the government to provide relief to its employees and pensioners.

In conclusion, the factors that affect the DA hike in October are the calculations based on the CPI-IW index and the cost of living. With a 4% hike expected for central government employees and pensioners, this increase will help them combat the effects of inflation and rising prices.

DA Hike: How is the AICPI-IW index calculation done?

The All India Consumer Price Index for Industrial Workers (AICPI-IW) is used to calculate Dearness Allowance (DA) hikes for central government employees and pensioners. The AICPI-IW index is determined by the Ministry of Labour & Employment’s Labour Bureau, which collects retail price data from 317 markets in 88 industrially important centres across India.

The collection of retail price data is done on a monthly basis by trained officials in the Labour Bureau. These officials visit the selected markets and record prices of various essential items including food, clothing, housing, fuel, and more. The data collected is then compiled and used to calculate the average retail prices for different categories of items.

Based on the average retail prices, the index number is calculated using the AICPI-IW formula. The formula takes into account the relative importance of different items and assigns weights accordingly. The AICPI-IW index for a particular month is compared to the base year’s index, which is set at 100, to determine the percentage increase in prices.

The AICPIN table for the period of July 2022 to June 2023 provides month-wise data on the increase in Consumer Price Index (CPI) numbers and the corresponding rate of DA. The table shows how the AICPI-IW index fluctuates over the months, reflecting the impact of inflation on the cost of living.

In conclusion, the AICPI-IW index plays a crucial role in determining the DA hike for central government employees and pensioners. The Ministry of Labour & Employment’s Labour Bureau collects retail price data from various markets to calculate the index number, which is used to measure the impact of inflation on the cost of living and determine the rate of DA.

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