This will be the second hike of the year. Since the DA of the employees increases twice a year in January and July. The 4% hike for January 2023 has already happened and is yet to happen for July, depending on the half-yearly figures of the AICPI index.
Central Employee Next DA Hike: Central employees and pensioners may soon get another good news. Before the upcoming elections, once again in July, the DA of employees and pensioners may increase by 3 to 4 percent. This estimate has been made from the data of AICPI index released till March. Earlier, the Central Government had increased DA by 4% in March, after which the total DA has increased to 42%. If there is an increase now, it can reach 45% or 46%. This will benefit 48 lakh employees and 69 lakh pensioners of the country. Although the final DA increase in July is yet to be officially confirmed.
Will there be a second hike in July?
This will be the second hike of the year. Since the DA of the employees increases twice a year in January and July. The 4% hike for January 2023 has already happened and is yet to happen for July, depending on the half-yearly figures of the AICPI index. The Labor Ministry has so far released the figures for January-February and March and now the figures for April are to be released at the end of May. This will indicate how much DA will increase in July. After this the CPI-IW numbers of May and June will also be added and the final DA/DR will be decided. If the index number reaches above 132.7 then the DA is set to increase by 4 per cent in July.
Expected to grow again by 3-4 percent
According to media reports, according to the AICPI index data that has come so far, a further increase of 3-4% in DA is expected for the 7th Pay Commission employees, which can be implemented from July. At present the employees are getting 42% DA, if 3% dearness allowance increases then total DA will be 45% and if 4% increase then dearness allowance will be 46%. The new rates may come into effect from July 1, 2023, and can be announced anytime between Rakshabandhan to Diwali, although it has not yet been officially confirmed that how much DA will increase and when it will be announced.
This is how dearness allowance is calculated
A formula has been given to determine the dearness allowance. For Central Government employees, this formula is [(Average of All India Consumer Price Index (AICPI) of the last 12 months – 115.76)/115.76]×100. Same for the employees working in PSU (Public Sector Units) for dearness allowance. Talking about it, the method of its calculation is- Dearness Allowance percentage = (Average of consumer price index of last 3 months (Base year 2001=100)-126.33))x100
