DA Hike: Good news for central employees! No confusion, DA will increase by 4%, know update….

DA Hike: It can be announced by the government at the end of September. There is a clear indication from the numbers of AICPI index that how much dearness allowance will increase.

DA Hike: There is great news for central employees. The wait for Dearness Allowance (DA Hike) to be implemented from July 1, 2023 is going to end soon. It can be announced by the government at the end of September. There is a clear indication from the numbers of AICPI index that how much dearness allowance will increase. But, it is decided by the government and it is decided after approval from the cabinet. Recently a situation of confusion has arisen. In some reports, it was claimed about the Dearness Allowance (DA) that it would increase by 3 percent. That means the current rate will increase from 42 percent to 45 percent. But, this is a baseless claim. Let’s know why?

The news of DA increase of 3% is baseless.

Actually, Dearness Allowance (DA) is decided on the basis of monthly numbers of All India Consumer Price Index (AICPI). The number of dearness allowance applicable from July 2023 is decided by the AICPI index from January to June. If we look at the trend of numbers for six months, then it is certain that there will be a 4 percent increase in dearness allowance (DA Hike). Take a look at the calculation given below. In such a situation, the talk of an increase of 3 percent seems wrong. However, the final decision rests with the government. But, until it gets approval from the cabinet. Till then it is too early to say anything.

Only 4 percent increase

A few days ago a report came that there would be a revision of 3 per cent in his dearness allowance. But, from where this 3 percent calculation came, the reason behind it is not clear. If we look at the calculation, it is confirmed that this time also a jump of 4 percent will be seen in the dearness allowance.

This is how DA will be calculated

According to experts, in July 2023, dearness allowance will not increase by less than 4 percent. The logic behind this is that due to the movement shown in the price index ratio, the DA score has crossed 46 per cent. In June, the number of the index was 136.4 points. If you see the calculation on the basis of this, DA Score has reached 46.24. This means that there will be a total increase of 4% in DA. Because, DA is given in round figure and if it is less than 0.51 then it will be considered as 46 percent only.

Understand DA Hike like this

The index number in December 2023 was 132.3 points, making the total DA score 42.37 per cent. After this, the index reached 132.8 in January and the DA score increased to 43.08. Similarly, the score of every month is decided. see calculation below

Confirmed 46% DA Hike
If we look at the calculation given above, then once again there will be an increase of 4 percent under the 7th Pay Commission. With this, the total dearness allowance will increase to 46 per cent. It will be implemented from 1 July 2023. However, we will have to wait a bit for its announcement. It can be announced in late September or early October. The arrears (DA Arrears) will be given to the central employees from July until it is announced.

How much will be the increase in salary?

1. Basic salary of the employee – Rs 18,000
2. New Dearness Allowance (46%) – Rs.8280/month
3. Dearness Allowance till date (42%) – Rs.7560/month
4. By how much dearness allowance increased – 8280-7560= Rs 720/month
5. Increase in annual salary – 720X12 = Rs 8640

See calculation on maximum basic salary of Rs 56,900

1. Basic salary of the employee – Rs 56,900
2. New Dearness Allowance (46%) – Rs 26,174/month
3. Dearness Allowance till now (42%) – Rs 23,898/month
4. By how much dearness allowance increased – 26,174-23,898= Rs 2276/month
5. Increase in annual salary – 2276X12 = Rs 27312

Note: This is an estimated salary, the final salary will be made only after adding allowances like HRA.