There are signs of increasing DA again by 4 percent in July. This will increase the salary from 50000 to 1 lakh. Its benefits are being given to 48 lakh employees and 69 lakh pensioners. DA will be determined by the formula (42 x 29200) / 100. Similarly, dearness relief for pensioners is also calculated.
Central Employee Next DA Hike: Recently, the Modi government at the Center has increased the dearness allowance of central employees and pensioners by 4 percent, after which the total DA of the employees has increased to 42 percent.
The new rates have come into effect from January 1, 2023, which will be effective till June 1, 2023. After this, the rates of DA for the next half-year will be announced, which will depend on the AICPI data from January to June. It is estimated that DA may increase again by 4 percent in July.
Dearness allowance increases twice a year
Actually, the DA of central employees increases twice a year in January and July, it is calculated on the basis of Consumer Price Index for Industrial Workers (CPI-IW) released by Labor Bureau every month. Recently, the February data released by the Labor Ministry has come down by 0.1 point and the index number has reached 132.7, indicating a further increase in DA by 4% in July.
This will increase the salary from 50000 to 1 lakh. Its benefit will be given to 48 lakh employees and 69 lakh pensioners. DA will be determined by the formula (42 x 29200) / 100. Similarly, dearness relief for pensioners is also calculated.
3 or 4 percent increase in dearness allowance possible
This will be the second hike of the year. Although the figures from March to June are yet to come, after that it will be decided by what percentage the DA of the employees-pensioners will increase in July 2023.
According to media reports, if the figures of AICPI index from January to July increase, then it will increase the total DA by 45% at 3% DA and 46% at 4%. The new rates may come into effect from July 1, 2023 and may be announced around Rakshabandhan, although it is not yet officially confirmed that how much DA will increase and when it will be announced.
Possible increase in HRA
According to media reports, the next revision in house rent allowance along with dearness allowance may be up to 3%. Thereafter the maximum HRA will increase to 30% from the existing rate of 27%. But this will happen only when DA crosses 50%. According to the memorandum of the Finance Department, HRA will be 30%, 20% and 10% when DA crosses 50%.
The category of house rent allowance is according to X, Y and Z class cities. The central employees who fall in the X category are getting 27% HRA, which will be 30% if the DA is 50%. For Y class it will increase from 18% to 20%. For Z class people, it will increase from 9% to 10%.
