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DA Hike Expected in July: Impact on 1.15 Crore Beneficiaries
Central government employees and pensioners may see a 3-4% DA hike in July based on AICPI trends. The hike could affect consumer spending and inflation.
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The Finance Ministry is expected to announce a dearness allowance hike for central government employees and pensioners in July or September, according to a report. The increase, likely between 3% and 4%, would affect roughly 1.15 crore beneficiaries – 50 lakh employees and 65 lakh pensioners, including defence and railway staff.
DA is a cost-of-living adjustment paid as a percentage of basic pay. The government revises it twice a year based on the All India Consumer Price Index for Industrial Workers. The index stood at 149.1 in March and 149.9 in April. The May reading was 150.8. The June reading, due later this month, will determine the final hike size. If the index rises at the same pace as in May, the 12-month average would support a 3-4% increase.