Last month, Union Cabinet raised the Dearness Allowance (DA) and Dearness Relief (DR) by 4 per cent for central government employees and pensioners.
Anurag Thakur, Union Minister of Information & Broadcasting had announced on March 24, 2023 that with the recent 4 per cent hike, DA for central government employees and DR for pensioners will be increased to 42 per cent. This will be effective from 2 January 2023.
According to Thakur, this decision will help 69.76 lakh central government pensioners and about 47.58 lakh central government employees of the government.
Central government employees can calculate the increase in their salary according to their basic pay and grade after the DA hike.
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Dearness Allowance Hike: Calculation at 42% DA
After the 4% Dearness Allowance hike, the total DA figure has risen to 42%.
If calculated in the maximum salary range, then the total annual dearness allowance on the basic salary of Rs 56,900 will be Rs 2,86,776.
Those falling in this pay grade will get Rs 2,276 more as DA, than the current rate.
Their monthly DA amount will rise to Rs 23,898 with this DA hike announcement.
How to calculate DA arrear
To calculate DA on your salary, multiply your basic salary by the applicable (current) DA rate then divide the result by 100. Your DA calculation will be as follows: (42 x 29200) / 100 = 12264 if your base income is 29200 (pay matrix level 5). Hence, for the base salary of Rs. 29200, the DA amount you would earn is Rs. 12264.
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Similarly, use the same approach to determine DR for your pension. Divide the figure by 100 after multiplying your basic pension by the current DR rate. For instance, your DR calculation will be as follows if your pensioner’s basic pension (not bank pension) is 24500: (42 x 24500) / 100 = 10290. So, for the Rs 24500 basic pension, the DR amount you would receive is Rs. 10290.
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For arrears, you need to multiply by the number of months. For example, if your monthly DA is Rs 12,264 and you want to calculate from January to March 2023, then the total amount would be Rs 12,264*3= Rs 36,792.
