The central government can increase the DA of its employees. This can be increased by 3 percent. The new rate will be considered applicable from 1 July 2023. At present, central employees get 42 per cent dearness allowance.
New Delhi. The central government can increase the dearness allowance (DA) for its more than one crore employees and pensioners by three percent to 45 percent under the agreed formula. At present the DA is 42 percent. Dearness allowance for employees and pensioners is decided on the basis of Consumer Price Index for Industrial Workers (CPI-IW) released by the Labor Bureau every month.
Shiv Gopal Mishra, general secretary of the All India Railwaymen’s Federation, told news agency Bhasha, “The CPI-IW for June 2023 was released on July 31, 2023. We are demanding a four percent hike in dearness allowance. But the government can increase the dearness allowance by three percent.
It is likely to be 45 percent. He further informed that the Department of Expenditure of the Ministry of Finance will prepare a proposal for hike in DA and place the proposal before the Union Cabinet for approval. The DA hike will be effective from July 1, 2023. The last revision in DA was done on 24 March 2023 and it became effective from 1 January 2023.
There was an increase in March.
Earlier, dearness allowance was increased in March. Then the arrears of DA were given from January 1. Then DA was increased by 4 percent from 38 to 42 percent. Now once again there is a possibility of increase in dearness allowance.
Employees will also get arrears of 2 months due to being considered applicable from 1st July. Significantly, this rate of DA is under the 7th Pay Commission. The DA rate will be different for the employees drawing salary under the old pay commission.
How much will the salary increase
Suppose that the basic salary of a central employee is Rs 20,000 and his DA has been increased by 4%. Now multiply 20,000 by 4 percent. After calculation the answer will come Rs 800. That means his salary has increased by Rs.800. The benefit of DA hike is not only available to the existing employees but also to the pensioners.
