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.

DA Hike Calculation

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

Download Cabinet approves release of an additional instalment of Dearness Allowance to Central Government employees and Dearness Relief to Pensioners, due from 01.01.2023 PDF

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%.

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.

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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Announcement of DA Hike Jan 2023 For Central Government Employees Possible Today

Cabinet approves release of an additional instalment of Dearness Allowance to Central Government employees and Dearness Relief to Pensioners, due from 01.01.2023

If the hike is approved, the DA for employees and pensioners is estimated to increase by 4% to 42% from the existing 38%.

The increase in Dearness Allowance (DA) on salaries for more than one crore central government employees and pensioners is expected to be announced by the Union Cabinet by today. An announcement in this regard is expected to be made during today’s cabinet meeting, according to reporting from Zee News. The DA for CG employees and pensioners is expected to go up from its current 38% to 42% if the raise is approved.

Beginning on January 1, 2023, Central Government employees, pensioners, and family pensioners can expect an increase in income as the Union Cabinet Committee is expected to approve a 4% increase in Dearness Allowance (DA) and Dearness Relief (DR). All Central Government employees, pensioners, and their families will be subject to this hike, bringing the DA and DR rate to 42%. Following the sixth and final calculation, the DA on the base salary for January 2023 has been established. The DA and DR rate is currently 38%, but after the proposed hike, the Finance Ministry will announce the new rate for DA and DR.

Employees of the Central Government will start receiving a 42% Dearness Allowance on their basic salary on January 1st, 2023. Here is an illustration of how to compute it: Let’s imagine an employee receives a base salary of 49,000 rupees. There are Rs. 392 in DA arrears as a result of 38% of their basic pay in January 2023 being Rs. 1862 and 42% being Rs. 2058. The same remains true for February 2023, while March 2023 will have DA arrears of Rs. 2154. Use this practical 42% DA calculation to be informed on the most recent salary changes.

Existing CG employees will receive payments in arrears for the first two months of the DA raise by March 2023. For active and retired employees, respectively, the basic pay or basic pension will be used to compute the Dearness Allowance or Dearness Relief. For Central Government employees, pensioners, and their families, this rise will provide much-needed relief from the growing cost of living and inflation.

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