Home Business Centre to Increase Dearness Allowance by 3% to 45% | Important Information You Should Know
The dearness allowance is expected to be increased from the current 42% to 45% by the Modi government. This increase in the dearness allowance will benefit over one crore government employees and pensioners. The dearness allowance is calculated based on the Consumer Price Index for Industrial Workers (CPI-IW), which is released monthly by the Labour Bureau under the Labour Ministry.
According to Shiva Gopal Mishra, the General Secretary of the All India Railwaymen Federation, the CPI-IW for June 2023 was released on July 31, 2023, and a four percentage point increase in the dearness allowance was demanded. However, due to the government’s policy of not increasing the dearness allowance beyond decimal points, the expected increase will be a little over three percentage points.
The dearness allowance is provided by the government as a compensation against inflation or rising prices. It is revised periodically based on the cost of living, which is determined by the CPI-IW. The latest hike in the dearness allowance will only be applicable after the expenditure department of the finance ministry prepares a proposal and submits it to the Union Cabinet for approval.
With a 3% increase in the dearness allowance, the monthly increase in salary will be Rs 750 for someone with a basic salary of Rs 25,000. The last revision of the dearness allowance occurred on March 24, 2023, and came into effect from January 1, 2023.
Furthermore, the government has delayed the implementation of the import restriction order on laptops and computers until October 31. This decision gives electronic companies more time to import these devices without a license. Starting from November 1, these companies will be required to obtain a license for importing laptops and computers.
The Directorate General of Foreign Trade (DGFT) has provided a transitional arrangement that allows import of laptops, tablets, all-in-one personal computers, ultra-small form factor computers, and servers without a license until October 31, 2023. This decision offers relief to companies that have been concerned about the earlier import restriction order.
To stay updated with the latest information, subscribe to our newsletter now.