Dearness Allowance Hike latest News (July 10, 2023): The Department of Public Enterprises (DPE) under the Ministry of Finance has modified the rates of Dearness Allowance (DA) payable to the executives of CPSEs
Dearness Allowance Hike latest News (July 10, 2023): The Department of Public Enterprises (DPE) under the Ministry of Finance has modified the rates of Dearness Allowance (DA) payable to the executives of CPSEs holding Board level posts, below Board level posts and Non-Unionized Supervisors following the IDA pattern of 1992 pay scales.
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The modified DA rates will be payable from July 1, 2023. According to an Office Memorandum of DPE dated July 7, the new DA rates are as follows:
- Upto Rs 3500 Basic Pay per Month: The DA rate from 1st July 2023 will be 701.9% of pay subject to minimum of Rs. 15,428.
- Above Rs 3500 and upto Rs 6500 Basic Pay per Month: 526.4% of pay subject to minimum of Rs 24,567
- Above Rs 6500 and upto Rs 9500 Basic Pay per Month: 421.1% of pay subject to minimum of Rs 34,216.
- Above Rs 9500 Basic Pay per Month: 351.0% of pay subject to minimum of Rs 40,005.
The instalment of DA to CPSE employees becomes payable from 1st January, 1st April, 1st July and 1st October every year based on the price increase above the quarterly Index average of 1099 (1960=100). The DPE said Average AICPI (1960=100) for the quarter March 2023 to May 2023 is 8813. The increase over the link point in percentage [(8313-1099)/1099*100] is 701.9%.
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“The quantum of IDA payable from 01.07.2O23 at the old system of neutralization @ Rs.2.00 per point shift for increase of 96 points, may be Rs.192/- and at AICPI 8813, DA payable may be Rs. 16215.75 to the executives holding Board level post, below Board level post and non-unionized supervisors following IDA pattern in the CPSEs of 1987 pay scales,” the DPE said.
Other DA Modifications
1. Under new DA Scheme at Annexure-Ill of DPE’s OM dated 25.06.1999, wherein the rates of DA payable to the Board level and below Board level executives and non-unionized supervisors of CPSEs have been indicated, the rate of DA payable will be 416% from 01.07.2023 to the executives and non-unionized supervisors of CPSEs.
The above rates of DA i.e.416% would be applicable in the case of IDA employees who have been allowed revised pay scales (1997) as per DPE O.M. dated 25.06.1999.
2. Under para 6 and Annexure-ll (B) of DPE’s OM dated 26.11.2008, wherein the rates of DA payable to the
Board level and below Board level executives and non-unionized supervisors of CPSEs have been indicated, the rate of DA payable to the executives and non-unionized supervisors of CPSEs w.e.f 01.07.2023 for 2007 pay scales is 2O5.6%.
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The above rate of DA i.e. 205.67% would be applicable in the case of IDA employees who have been allowed revised pay scales (2007) as per DPE O.Ms. dated 26.11.2008, 09.02.2009 & 02.04.2009.
3. Under para 7 and Annexure-lll (B) of DPE’s OM dated 03.08.2017 wherein the rates of DA payable to the Board level and below Board level executives and non-unionized supervisors of CPSEs have been indicated, the rate of DA payable to the executives and non-unionized supervisors of CPSEs w.e.f. 01.07.2023 for 2017 Pay Scales is 39.2%.
The above rate of DA i.e.39.2% would be applicable in the case of IDA employees who have been allowed revised pay scales (2017) as per DPE O.Ms. dated 03.08.2017, 04.08.2017 & 07.09.20I7.
4. The rates of Dearness Allowance payable to the employees of CPSEs governed by the recommendations of HPPC, which has not revised their pay scales in terms of DPE O.M. No. 2(54)/2008-DPE(WC) dated 14.10.2008, may be as follows:-
a) In case of CPSEs, who have not allowed the benefit of merger of 50% of DA with basic pay as contained in DPE O.M. dated 24.05.2005 to their employees, the DA payable may be enhanced from existing rate of 446% to 462% w.e.f. 01.01.2023.
b) In case of CPSEs, who have allowed the benefit of merger of 50% of DA with basic pay as contained in DPE O.M. dated 24.05.2005 to their employees, the DA payable may be enhanced from existing rate of 396% to 412% w.e.f. 01.01.2023.
