DA Hike: You will get the gift of dearness allowance and will definitely get it. The Central Government may soon announce an increase in Dearness Allowance (DA) for central employees and pensioners.
DA Hike: The month of September has arrived. The heartbeats of central employees are increasing. The wait has been long. But now the wait is about to end. The wait for dearness allowance is now just a few days away. The festive season is starting in October. In such a situation, festivals will bring joy in the lives of central employees.
You will definitely get the gift of dearness allowance. The Central Government may soon announce an increase in Dearness Allowance (DA) for central employees and pensioners. It is confirmed how much dearness allowance is going to increase.
Now just wait for a few days…
To fight inflation, the central government increases dearness allowance from time to time. Usually it is revised in January and July. However, the increase in DA and payment is announced with some delay.
We have reached the last stage of September. In such a situation, there are not many days left for the announcement of dearness allowance. But, the question remains that how much increase in dearness allowance can the central employees expect this time? Let us know.
How much increase is expected in DA?
DA for central government employees is calculated on the basis of the latest Consumer Price Index for Industrial Workers (CPI-IW). There is a fixed formula for calculating dearness allowance of central government employees and pensioners.
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
As you can see from the table, the average CPI-IW for the last 12 months would be 382.32. According to the formula, DA will be 46.24%. As per the prescribed formula, the current DA is available at 42% (DA 42% is applicable from January 1, 2023).
In such a situation, according to the new calculation, the increase in DA from July 1, 2023 will be 46.24%-42% = 4.24%. Now, because the government does not make payments in decimal, there will be an increase of only 4 percent in their dearness allowance. If sources are to be believed, the central government will announce a 4% increase in dearness allowance in October.
When will DA be implemented?
At present, dearness allowance and relief are being paid to central employees and pensioners at the rate of 42 percent. In such a situation, after revision, dearness allowance will be 46 percent (after increase of 4%). Remember, the increase in dearness allowance will be implemented from July 1, 2023.
How much will the salary increase?
DA is calculated as a part of the basic salary of central government employees. This will be inflation relief for central government pensioners. Therefore, when DA increases, the salary of central government employees increases. Let us assume that if the basic salary of an employee is Rs 36,500 per month.
In such a situation, with 42% dearness allowance, he would be getting Rs 15,330. But, after the increase of 4 percent, DA will be 46 percent and you will get Rs 16,790 every month. In such a situation, the total income of the central employee will increase by Rs 16,425-15,330 = Rs 1,460/month.
Arrears will also be paid
As soon as the announcement is made by the Central Government, DA will be implemented from July 1, 2023. If dearness allowance is announced in October, then along with the salary, the employees will also have to pay arrears. In this, arrears of July, August and September will be received.
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.
When can DA hike be announced?
The central government may announce dearness allowance soon. The announcement of dearness allowance to be implemented from January 1 was made on March 24, 2023. The increase in dearness allowance from July 1 in the year 2022 was announced on September 28.
In such a situation, it is expected that it can be announced by the end of September. But, according to the information received by Zee Business, the government can give this gift during the festive season in October.
Navratri is starting from 15th October. In such a situation, it can be approved in the cabinet. After approval, more than 1 crore employees and pensioners will get direct benefits.
