Center likely to raise carriage allowance to 42%

NEW DELHI: Central government likely to increase caress allowance (DA) for its employees and retirees by more than four percentage point crore to 42% from the current 38% as per the agreed formula for the purpose.
Caress allowance for employees and retirees is worked out on the basis of the latest Consumer price Industrial Workers Index (CPI-IW) published monthly by the Labor Office. The Labor Office is a wing of the ministry of labour.
Speaking to PTI, All India Railwaymen Federation, the Secretary General, Shiva Gopal Mishra, said, “The CPI-IW for December 2022 was released on 31 January 2023. The increase in caress allowance turns out to be 4.23%. But the government doesn’t account for the increase in DA beyond the decimal point. Thus, DA is likely to increase by four percentage points to 42%.
He further explained that the Expenditure Department of the Ministry of Finance will make a proposal to increase the DA along with its revenue implications and will submit the proposal before the Union Cabinet for the approval.
The DA increase will be effective from 1 January 2023.
Currently over one crore of central government employees and retirees receive 38% coring allowance.
The latest revision in DA was made on September 28, 2022, effective as of July 1, 2022.
The Center increased the AD by four percentage points to 38% based on the 12-month average percentage increase in India’s consumer price index for the period ending June 2022.
AD is provided to employees and retirees to compensate them for price increases. The cost of living increases over a period of time and is reflected across the CPI-IW.
The allowance is reviewed periodically twice a year.


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