DA Latest Update: Central government employees are likely to get some good news about their salary, going by the media reports. The reports indicate that after a 4 per cent hike in dearness allowance and dearness relief in September, the government might increase the DA and DR by another 3-5 per cent in March 2023. Lakhs of central government employees are also waiting for 18-month DA arrears, as per reports.
The government in September hiked DA and DR by 4 per cent, benefitting 48 lakh central government employees and 68 lakh pensioners in the country ahead of Diwali and festive season. After the hike, the DA or DR increased to 38 per cent of the basic pay or pension, respectively, effective July 1, 2022. Before this, the DA was revised in March.
The DA hike has raised the dearness portion of central government employee salaries. For example, if somebody’s salary is Rs 50,000 per month and has Rs 15,000 as the basic pay. You till now get Rs 5,100, which is 34 per cent of the basic pay. However, now after the 4 per cent hike, you will get Rs 5,700 per month, which is Rs 600 higher. So, if you have a Rs 50,000 salary a month with Rs 15,000 as the basic pay, your salary will rise by Rs 600 per month.
The DA and DR hike is decided based on the percentage increase in 12 monthly average of the All India Consumer Price Index (AICPI) for the period ending June 2022. Though the central government revises the allowances on January 1 and July 1 every year, the decision is generally announced in March and September.
In March, the Union Cabinet had approved to increase 3 per cent in DA under the 7th Pay Commission, thus taking the DA to 34 per cent of the basic income. In 2006, the central government had revised the formula to calculate the DA and DR for central government employees and pensioners.
Dearness Allowance Percentage = ((Average of All-India Consumer Price Index (Base Year 2001=100) for the past 12 months -115.76)/115.76)x100.
For Central public sector employees: Dearness Allowance Percentage = ((Average of All-India Consumer Price Index (Base Year 2001=100) for the past 3 months -126.33)/126.33)x100