DA Hike Jan 2023 – Cabinet Approves 4% DA to Central Government employees
DA Latest News For Central Government Employees
38% + 4% = 42%
Cabinet approves release of an additional instalment of Dearness Allowance to Central Government employees and Dearness Relief to Pensioners, due from 01.01.2023
24 MAR 2023
The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, today has given its approval to release an additional instalment of Dearness Allowance to Central Governments employees and Dearness Relief to Pensioners with effect from 01.01.2023. The additional instalment will represent an increase of 4% over the existing rate of 38% of the Basic Pay/Pension, to compensate against price rise.
The combine impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs.12,815.60 crore per annum.
This will benefit about 47.58 lakh Central Governments employees and 69.76 lakh pensioners.
This increase is in accordance with the accepted formula which is based on the recommendations of the 7th Central Pay Commission.
PIB
4% Additional Dearness Allowance from 1st of January 2023.
The Consumer Price Index (IW-BY 2016=100) from July-December 2022 showed a 4% hike in Dearness Allowance, pushing the total to 42%.
| Month/Year | DA% | DA% |
| January 2023 | 38% | |
| February 2023 | 38% | |
| March 2023 | 42% | |
| April 2023 | 42% | |
| May 2023 | 42% | |
| June 2023 | 42% |
7th CPC DA Table 2023
The Dearness Allowance is a major factor of income for state employees and pensioners in India. The DA table below shows how the allowance rate has risen from 0% to 42% between 2016 and 2023.
| DA Effective From | DA Rate 2016 to 2023 |
|---|---|
| January 2023 | 42% (Expected) |
| July 2022 | 38% |
| January 2022 | 34% |
| July 2021 | 31% |
| July 2021 | 28% |
| July 2019 | 17% |
| January 2019 | 12% |
| July 2018 | 9% |
| January 2018 | 7% |
| July 2017 | 5% |
| January 2017 | 4% |
| July 2016 | 2% |
| January 2016 | 0 |
2023 DA Arrears for Central Government Staffs
Generally, Dearness Allowance increases are announced in March and September, and are implemented in January and July of the following year, respectively. As a result, Dearness Allowance will be paid in arrears for the first two months of each quarter. All Central Government employees, pensioners, and beneficiaries of family pensions will be subject to an additional 4% rise in the Dearness Allowance rate effective on January 1, 2023. By March 2023, existing CG employees would get a 42% Dearness Allowance, along with arrears for the months of January and February 2023. The Dearness Allowance or Dearness Relief will be calculated using the existing and retired employees’ respective basic pay or basic pension.
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