DA Hike: Actually, the employees who were waiting for the announcement of dearness allowance by the end of September may be disappointed. Because, DA Hike will not be announced this month. The government may delay a little in approving it.
DA Hike: Central employees are waiting for their increased dearness allowance. The wait is getting longer. It is expected that dearness allowance will be announced at the end of September. But, now a new update has come out. Such an update which perhaps central employees and pensioners will not like to know. In fact, those employees who were waiting for the announcement of dearness allowance by the end of September may be disappointed. Because, DA Hike will not be announced this month. The government may delay a little in approving it.
There will be no announcement this month
It was claimed in the reports that the government may approve the increase in dearness allowance in the third or fourth week of September. But, according to the latest update, the government will not make any such announcement this month. However, some reports have also claimed that the government may approve increase in dearness allowance of central employees before Diwali. However, this time Diwali is falling on 12th November. In such a situation there will not be such a long wait.
So when will dearness allowance be announced?
According to the information received by Zee Business, the Central Government will approve the dearness allowance in the cabinet during the festive season and after that its payment will start. The government can approve it before Dussehra in October. Meaning, new dearness allowance can be added to the salary at the end of October. However, till now no formal information has been given by the government regarding the date. But, if sources are to be believed, its announcement is possible just before Dussehra.
How much will dearness allowance increase?
Dearness Allowance (DA) of central employees is decided on the basis of Consumer Price Index of Industrial Workers (CPI-IW). There is a fixed formula for calculating dearness allowance. 7th CPC DA% = [{Average of AICPI-IW (Base Year 2001=100) for the last 12 months – 261.42}/261.42×100]
=[{382.32-261.42}/261.42×100]= 46.24. In such a situation, it is clear that there will be an increase of only 4 percent in dearness allowance. This means that their dearness allowance will increase to 46 percent.
How did 4% DA get confirmed?
The average of CPI-IW for the last 12 months will be 382.32. According to the formula, the total DA will be 46.24%. The current DA is 42%. In such a situation, according to the new calculation, the increase in DA from July 1, 2023 will be 46.24%-42% = 4.24%. Since decimals are not counted in the calculation, dearness allowance will increase by 4 percent. CPI-IW data for June 2023 was released on July 31, 2023. Since then, the central employees drawing salary under the 7th Pay Commission are continuously waiting for the increase in dearness allowance.
Arrears will also be paid
The increase in dearness allowance for central employees will be approved in October. In such a situation, their new dearness allowance will be added in October only. In this way, they will also be paid 3 months arrears along with the October salary. DA will be implemented from July 1, 2023. Therefore, the difference in the months of July, August and September has to be added to the October salary as arrears. In the case of pensioners, dearness relief is also increased equal to dearness allowance. In such a situation, pensioners will also get additional payment of 4 percent and will get arrears in pension from July.
