New Delhi, October 18, 2023 – The Union Cabinet is poised to greenlight a substantial 4% increase in Dearness Allowance (DA) for government employees, according to reports circulating on Wednesday. The eagerly awaited announcement of the DA hike is anticipated to occur later today, pending approval from the Union Cabinet. Should this 4% increment be approved, the prevailing Dearness Allowance rate will ascend to 46%.

With a nod from the Union Cabinet, the enhanced DA for central government employees is slated to take effect from July 1, 2023. This strategic move is scheduled ahead of the joyous occasions of Dussehra and Diwali, ensuring that government employees will receive their augmented salaries come November, coupled with the corresponding arrears.

At present, an estimated 1 crore central government employees and retirees receive a 42% dearness allowance. The previous modification to the DA occurred on March 24, 2023.

Much-Needed Relief Through DA Hike

This prospective DA hike is poised to provide considerable relief to central government employees and pensioners who have been grappling with soaring prices of essential commodities. In recent months, staples such as wheat, rice, and pulses have experienced noteworthy price escalations.

The Union Ministry of Commerce & Industry reported, "The annual rate of inflation based on the All India Wholesale Price Index (WPI) stands at (-) 0.26% (Provisional) for the month of September 2023 compared to the same period in 2022, a marginal improvement from the (-) 0.52% registered in August 2023." Furthermore, the government disclosed that the month-to-month variation in WPI for September was noted at (-) 0.59%, relative to August 2023. This demonstrates a more favorable pricing trend, which amplifies the significance of the impending DA hike for government employees.

The forthcoming announcement of the 4% DA hike holds promise in providing financial relief and easing economic hardships for central government employees and pensioners amidst a challenging economic climate.

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