DA Hike: By the end of October, it will be decided how much the dearness allowance of central employees will increase. This can be announced by the government. The numbers of AICPI index clearly indicate that there will be an increase of 4% in dearness allowance.
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. By the end of October, it will be decided how much the dearness allowance of central employees will increase. The government can announce this in the last week of October. There is a clear indication from the AICPI index numbers that there will be an increase of 4% in dearness allowance. However, this will be decided by the government. It will be approved in the cabinet.
DA should increase only by 4 percent
Dearness Allowance (DA) is decided on the basis of monthly numbers of All India Consumer Price Index (AICPI). The number of dearness allowance to be implemented from July 2023 is decided by the AICPI index from January to June. If we look at the trend of six months’ numbers, it is certain that there will be a 4 percent increase in dearness allowance (DA Hike). Take a look at the calculation given below. However, the final decision rests with the government.
DA will be calculated like this
According to experts, dearness allowance will not increase by less than 4 percent in July 2023. The logic behind this is that due to the movement shown in the price index ratio, the DA score has crossed 46 percent. In June the index number was 136.4 points. If we look at the calculation based on 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 figures and if it is less than 0.51 then it will be considered only 46 percent.
How will DA Hike be calculated?
In December 2023, the index number was 132.3 points, due to which the total score of DA was 42.37 percent. 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
| Month | AICPI Index | DA % increase |
| Jan-2023 | 132.8 | 43.08 |
| Feb-2023 | 132.7 | 43.79 |
| Mar-2023 | 133.3 | 44.46 |
| Apr-2023 | 134.2 | 45.06 |
| May-2023 | 134.7 | 45.58 |
| Jun-2023 | 136.4 | 46.24 |
46% DA Hike is confirmed
If we look at the calculation given above, there will be an increase of 4 percent once again under the 7th Pay Commission. With this the total dearness allowance will increase to 46 percent. It will be implemented from July 1, 2023. However, we will have to wait for some time for its announcement. It may be announced in late September or early October. Central employees will get the arrears (DA Arrears) from July till it is announced.
How much will the salary increase?
1. Basic salary of employee Rs 18,000
2. New dearness allowance (46%) Rs 8280/month
3. Till now dearness allowance (42%) is Rs 7560/month.
4. 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 employee Rs 56,900
2. New dearness allowance (46%) Rs 26,174/month
3. Till now dearness allowance (42%) Rs 23,898/month
4. 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.
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