Dearness Allowance (DA) rate hike expected from July 2023: The Central Government recently increased Dearness Allowance (DA) for Central Government Employees.
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Dearness Allowance (DA) rate hike expected from July 2023: The Central Government recently increased Dearness Allowance (DA) for Central Government Employees and Dearness Relief (DR) for Central Government pensioners by 4%. The revised DA/DR rate will be applicable from January 1, 2023. Now that the rates have been revised, employees are looking forward to the next DA hike to be effective from July 2023. Here’s what employees can expect.
The Dearness Allowance rate is decided by the Government as per the All-India CPI-IW data released by the Labour Bureau under the Ministry of Labour and Employment.
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The AICPI-IW for February 2023 decreased by 0.1 points to 132.7, according to a press release by Labour Bureau. The All India Index for January 2023 was 132.8. While the AICPI-IW data for March 2023 will be released on 28th April 2023, the February data shows that the DA/DR rate may further increase by 3%.
The current rate of DA/DR for employees and pensioners is 42%. It may go up to 45% in the next revision, AICPI-IW data for February 2023 suggests. However, the confirmation of the expected DA/DR rate from July 2023 would come after the release of AICPI-IW data for the months leading o July i.e March, April, May and June 2023.
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The dearness allowance to employees is provided against the Basic Pay drawn as per the prescribed Level in the 7th Pay Commission Pay Matrix. However, it doesn’t include any other type of special pay etc.
DA hiked to 221% under 6th CPC
Meanwhile, the Finance Ministry has increased the rate of DA from 212% to 221% of Basic Pay with effect from 1st January 2023 for employees of Central Government and Central Autonomous bodies receiving their salary as per the 6 Pay Commission scale/Grade Pay.
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“…the rate of Dearness Allowance (DA) in respect of employees of Central Government and Central Autonomous Bodies, who are continuing to draw their pay in the pre-revised pay scale/Grade Pay as per 6th Central Pay Commission, shall be enhanced from the existing rate of 212% to 221% of Basic Pay w.e.f. 01.01.2023,” the Department of Expenditure under the Ministry of Finance said in an Office Memorandum dated April 10, 2023.
