7th pay commission DA Hike: If you are an employee and are waiting for the increase in dearness allowance, then there is great news for you. In fact, according to a recent update from the government, let us tell you that there will be an increase of four percent in the dearness allowance of the employees…
Big news for central employees may come this month. Yes, dearness allowance of central employees is likely to be announced this month. According to reports, the central government may announce DA increase for its employees between Navratri and Diwali. Once announced, the DA hike will be effective from July 1, 2023. Although earlier reports had suggested a 3 percent DA hike, the numbers may increase.
There may be an increase of 4 percent-
According to the report, according to the DA calculation formula based on the new Consumer Price Index (CPI-IW) for industrial workers, there is a possibility of a hike of 4 per cent for central government employees. After this increase, dearness allowance will reach 46 percent.
DA is given to government employees, while DR is given to pensioners. DA and DR are increased twice a year in January and July. At present, more than one crore central government employees and pensioners are getting 42 percent dearness allowance.
Salary had increased by this much in March-
In the last increase in March 2023, dearness allowance was increased by 4 percent to 42 percent. According to various reports, considering the current inflation rate, the next DA hike is expected to be 4 percent. Recently, various state governments including Madhya Pradesh, Odisha, Karnataka, Jharkhand and Himachal Pradesh increased the dearness allowance for their state government employees.
What is dearness allowance?
Dearness Allowance is that part of the salary of central employees, which is given by the government to reduce inflation. It is given to pensioners as dearness relief. As per the provisions of the Income Tax Act 1961, it is mandatory to declare tax liability in respect of DA while filing ITR.
Since the impact of inflation varies according to the location of the employee, DA is calculated accordingly. Thus, DA is not the same for all government employees, but varies depending on their location in urban, semi-urban or rural area. The rates of dearness allowance keep changing every six months.
