05-02-2023 : The finance ministry will formulate a proposal to hike DA along with its revenue implication and will put up the proposal before the Union Cabinet for approval, says report. The DA hike will be effective from January 1, 2023. Currently, over one crore central government employees and pensioners are getting 38 per cent dearness allowance.

According to news sources, the central government would likely boost the dearness allowance (DA) for its more than one crore employees and retirees by four percentage points, from the current 38 percent to 42 percent, in accordance with the formula set down for the purpose.

The DA rise for employees and pensioners is determined using the most recent Consumer Price Index for Industrial Workers (CPI-IW), which the Labour Bureau produces each month. A division of the labour ministry is the Labor Bureau.