DA Hike: Gift to central employees! Cabinet may approve increase in dearness allowance on this day,In a crucial development that comes as a sigh of relief for central government employees and pensioners, the Modi government is expected to announce a hike in dearness allowance (DA) in the upcoming cabinet meeting scheduled for Wednesday, October 11, 2023. The decision to increase the DA by 3 percent, taking it from 42 percent to 45 percent, is anticipated to take effect from July 1, 2023. This long-anticipated announcement is poised to provide significant financial relief to 47 lakh employees and 68 lakh pensioners across the country.
The timing of this decision holds special significance, with Navratri, the holy festival celebrated by millions of Indians, just around the corner. Navratri is set to commence on Sunday, October 15, 2023, and Dussehra, the culmination of this festive period, will be celebrated on October 24, 2023. The prospect of an increased DA prior to these festivities is sure to be a welcome gift for central government employees and pensioners as they prepare to celebrate with their families.
This isn’t the first time that the Modi government has chosen to announce a DA hike just before Navratri. Last year, a similar decision was taken, demonstrating the government’s commitment to providing financial relief to its employees during these auspicious times.
The increase in DA will be calculated based on the Consumer Price Index for Industrial Workers, which is released monthly by the Labor Bureau. While there were hopes for a 4 percent increase, the decision appears to be a 3 percent hike. Nevertheless, it is a significant move to alleviate the financial burden brought about by rising inflation, which has been a major concern for citizens across the country.
Retail inflation data for the month of September is set to be released on October 12, providing insight into the current state of the nation’s economy. Although there was a slight decrease in the retail inflation rate in August, dropping to 6.83 percent, it remains above the upper level of the Reserve Bank of India’s (RBI) tolerance band, which stands at 6 percent. Food inflation, which directly impacts the common man, was at nearly 10 percent in August, down from 11.51 percent in July. These high prices for essential commodities have caused concerns and anxieties, particularly among government employees who have been grappling with the ever-increasing cost of living.
The decision to increase DA is a testament to the government’s responsiveness to the economic challenges faced by its employees. It recognizes that a significant portion of the population depends on government salaries and pensions for their livelihood. With the forthcoming increase in DA, central employees and pensioners can look forward to an improvement in their standard of living, making their finances more manageable in these trying times.
As the cabinet meeting approaches, there is growing anticipation among central government employees and pensioners. This announcement signifies a crucial step towards alleviating the financial burdens they have borne due to inflation, ensuring that they can celebrate the upcoming festivals with greater peace of mind and financial security. The Modi government’s decision to increase the dearness allowance demonstrates its commitment to the welfare of its employees and its understanding of the economic hardships they have faced in recent times.