It is expected that the Union Cabinet would approve increasing the Dearness Allowance (DA) by 4% starting in July 2023. The Cabinet Committee on Economic Affairs generally approves this permission in the second week of September based on the average AICPIN for Industrial Workers over the previous 12 months.

4% Increase in Dearness Allowance from July 2023

With the expected hike, the current DA rate of 42% will rise to 46% as of July 1st, 2023. Given the rising cost of living, this increase in DA provides to help the central government employees and pensioners.

The All India Consumer Price Index for Industrial Workers (AICPIN) average for the time period ranging July of the previous year to June of the current year is taken into account by the DA calculation. The calculation has shown that for DA to remain equal to the cost of living, a rise of 4% is required.

This week’s next cabinet meeting is when the Indian government is anticipated to approve the DA increase. When granted, the higher DA will help millions of government employees and pensioners nationwide.

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