The government is expected to declare 4% increase in dearness allowance (DA) for central government employees in March 2024, as per reports from various media sources. The adjustment in DA, applicable to both employees and pensioners, is determined based on the latest Consumer Price Index for Industrial Workers (CPI-IW), released monthly by the Labour Bureau.
This upcoming raise aligns with the established formula derived from the recommendations of the 7th Central Pay Commission.
In October 2023, the Cabinet had sanctioned 4% hike in DA and Dearness Relief (DR) for pensioners, elevating the DA from 42% to 46%.
Earlier, the government approved Diwali bonuses for Group C and non-gazetted Group B level officials, including paramilitary forces.
For the financial year 2022–2023, the finance ministry had set ₹7,000 limit for the computation of non-productivity linked bonuses (ad hoc bonuses) for central government employees.
Dearness Allowance (DA) is a cost-of-living adjustment allowance provided by the government to public sector employees and pensioners.
It is calculated as a percentage of the basic salary.
For Central Government employees: Dearness Allowance percent = ((Average of AICPI (Base Year 2001=100) for the past 12 months -115.76)/115.76) *100
AICPI stands for All India Consumer Price Index.
For public sector (central government) employees, this formula is used:
Dearness Allowance percent = ((Average of AICPI (Base Year 2016=100) for the past 3 months -126.33)/126.33) *100
