At present the benefit of dearness allowance is 42%, which is estimated to be 46% after the increase. This will be implemented from July 2023, in such a situation, 3 months arrears will also be given to the employees, and the allowances will also increase. However, official confirmation is yet to be made.
7th Pay Commission/Central Employee DA Hike 2023: Before the Lok Sabha elections, there may be a rise in the salaries of central employees and pensioners once again. There is news that between Diwali and Dussehra, the Modi government at the Center can announce dearness allowance for the next half year. According to media reports, looking at the AICPI Index data from January to June, Modi government can announce a 4% increase in DA and DR. The benefit of increased dearness allowance (DA) and arrears can be given in the October salary, which will be available in November. However, official confirmation is yet to be made.
4 percent increase in DA possible
Actually, the DA/DR rates are revised by the Central Government twice a year in January and July, which depends on the half yearly data of AICPI index. The data has come from January to July 2023, in such a situation the DA score has been more than 45 percent, due to which it is believed that an increase of 4% in DA is certain, although the final decision has to be taken by PM Modi. At present the benefit of dearness allowance is 42%, which is estimated to be 46% after the increase. This will be implemented from July 2023, in such a situation, 3 months arrears will also be given to the employees, and the allowances will also increase.
There will be a jump in salary pension
It is believed that the proposal for DA increase can be placed in the cabinet meeting soon and after getting the approval, the Central Finance Department will issue the order. With the increase in DA, there will be a bumper jump in the salary of employees and pension of pensioners. For example, if the basic pay of an employee is Rs 18,000 and he currently gets dearness allowance at the rate of 42 per cent, then it comes to Rs 7,560, which will increase to more than Rs 8,100 at the rate of 46 per cent. At the maximum basic pay of Rs 56,900, it will be around Rs 27,000. Those with a salary of Rs 38,500 will get a benefit of more than Rs 17,000. You will also get the benefit of the same allowances. This will benefit 47.58 lakh employees and about 69.76 lakh pensioners.
August AICPI index data released
Amidst the discussions about DA increase, the Ministry of Labor and Employment has also released the AICPI Index data for August 2023. A decline of 0.5 points has been recorded in the August data of AICPI index and the figure has reached 139.2. The index was at 139.7 points in July, which has fallen to 139.2 in August, due to which the DA score has reached 47.97 percent in August. The figures for September, October, November and December are yet to come, due to which the rates of dearness allowance to be received from January 2024 will be revised. will be estimated.
Know how dearness allowance is made
DA for Central Government employees is calculated on the basis – {Average All India Consumer Price Index of last 12 months (Base Year-2001=100-115.76/115.76}X100. For Central Public Sector employees, the formula is as follows – {Average of 3 months All India Consumer Price Index (Base Year-2001=100-126.33/126.33}X100.
In other words, the amount of dearness allowance is calculated on the basis of multiplying the current rate of DA and basic salary. For example, if your basic salary is Rs 18,000 and DA is 46 percent, then your DA formula will be (46 x 29200) / 100. Similarly, dearness relief for pensioners is also calculated.
