DA Hike: Central government employees should get ready for another increase in Dearness Allowance (DA). The central government usually revises dearness allowance twice a year in January and July. DA hike is usually announced in March but this one is expected to be implemented from January.
DA Hike: Central government employees should get ready for another increase in Dearness Allowance (DA). The central government usually revises dearness allowance twice a year in January and July. DA hike is usually announced in March but this is considered to be implemented from January. Let us know here how much your dearness allowance will increase this time?
How much increase in dearness allowance can a central employee expect this time?
Dearness allowance for central government employees is calculated on the basis of CPI-IW. The Labor Bureau, a wing of the Labor Ministry, releases CPI-IW data every month. There is a formula to calculate dearness allowance of central government employees and pensioners. This formula will be applicable to those central government employees and pensioners who get salaries based on the recommendations of the Seventh Pay Commission.
How much will the salary of central government employees increase due to 4% DA increase?
All government employees and pensioners get dearness allowance and dearness relief. Dearness allowance is a part of the salary of government employees and pensioners. Its objective is to reduce the effect of inflation. In this, the money coming into the hands of government employees is revised from time to time.
Salary will increase by this much
For central government employees, the increase in DA increases their take-home salary. According to an example, a central government employee gets a basic salary of Rs 53,500 every month. At 46% his dearness allowance was Rs 24,610. Now, if DA increases to 50%, their DA will increase to Rs 26,750. That means, his monthly salary will increase by Rs 26,750 – 24,610 = Rs 2,140. This calculation has been done on the basis that there will be an increase of 4 percent in dearness allowance. If it is calculated on a yearly basis, it will increase by Rs 25,680 annually.
When will DA increase in the salary of central government employees?
The central government may soon announce DA increase. Last year, DA increase was announced on 24 March 2023 but it was considered to be implemented from 1 January 2023. More than one crore central government employees and pensioners will benefit from the increase in DA and DR.
