Dearness allowance Calculation: 4% dearness allowance increase for central employees is confirmed. It will be paid in March salary. But, how much money will increase in the March salary can be calculated on the basic salary.
Dearness allowance calculation: The wait of central employees is finally over. The Modi government at the Center will announce the dearness allowance for January 2023. Now the dearness allowance (Central government DA News) of the employees has increased by 4%.
Under the 7th Pay Commission, DA and DR are now being paid at the rate of 38% to all central government employees and pensioners. But, in March it will increase to 42% (DA Hike). DA will be paid at the rate of 42% in March salary and arrears of 2 months (January, February) will also be given. Now central employees can estimate the increase in salary according to their basic pay and grade.
How to calculate how much DA will increase?
The installment of DA will be paid along with the March salary. But, before that we can guess how it will be calculated and how it will be decided. Dearness Allowance (DA Hike) has increased by 4%. It is calculated only on Basic Salary. If someone’s salary is 20000 rupees, then according to 4%, his salary will increase by 800 rupees in a month.
This formula works
There is a formula for Dearness allowance calculation. The formula for central employees is [(Average of All India Consumer Price Index (AICPI) of last 12 months – 115.76)/115.76]×100. Now if we talk about dearness allowance of people working in PSU (Public Sector Units), then the method of its calculation is- Dearness Allowance percentage = (Average of consumer price index of last 3 months (Base year 2001 = 100)- 126.33))x100
How much salary will increase, understand DA calculation
According to the 7th pay matrix, there will be a bumper increase in the salary of the officer grade. If the basic pension of a pensioner is Rs.31,550. If you calculate on this then…
- Basic Pay – Rs 31,550
- Dearness Allowance (DA) paid so far – 38% – Rs 11,989
- New Dearness Allowance (DA) every month – 42% – Rs 13,251
- On increase of 4% Dearness Allowance (DA) – Rs 1262 (Every month) more will come.
- Annual Dearness Allowance paid – Rs 15,144 after 4% hike (Total 42%)
DA arrears will also be available
With the announcement of new dearness allowance/dearness relief (DA Hike) in March, arrears of two months will also be paid. This includes payment of enhanced DA for January 2023 and February 2023. Means additional payment of Rs 1262-1262 will be made along with the salary/pension of March.
Calculation at 42% DA
After the 4% dearness allowance increase, the total DA will be 42%. Calculating in the maximum salary range, the total annual DA on the basic salary of Rs 56,900 will be Rs 2,86,776. They will get Rs 2,276 more than the existing DA. Whereas, DA will be Rs 23,898 every month.
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