Dearness Allowance (DA) helps employees cope with increased living costs. It’s part of the wage system and used to motivate staff. Dearness Allowance helps employees cope with growing living costs. It helps employees stay up with inflation and economic changes. DA relies on inflation and the company’s wage structure. It’s commonly a percentage of base salary and adjusted for inflation.
According to a Labour Bureau press release, the All-India CPI-IW remained unchanged in November 2022. Therefore, January 2023 Dearness Allowance is finalized. According to the Seventh Central Pay Commission, this month’s CPI-IW data reveals a 4% increase in DA/DR for Central Government Employees and Pensioners. If the AICPIN index for December 2022 goes up more than 7 points or drops more than 5 points from the current level, the projection for DA in January 2023 could alter. The 42% DA from January 2023 is practically certain.
|M/Y||AICPIN 2016||AICPIN 2001||DA%|
If the AICPIN index number for the month of December will be 132.5, the additional DA/DR for Central Government employees, pensioners, and family pensioners will be 4%! The total DA/DR will move up to 42%!
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