DA Hike Update: Important news for central employees. According to a recent update, it has been told that when and by how much the dearness allowance of central employees will increase.
About one crore central employees and pensioners are waiting for the announcement of increase in dearness allowance. Dearness Allowance is revised twice a year. The last DA hike was on March 24, 2023 and was effective from January 1, 2023. The central government had increased the DA by 4 percent from 38 percent to 42 percent. Now the employees are waiting for the announcement of the second hike. The government has not yet told when it will give the good news to the employees. But, it is being speculated that the government will announce an increase in DA in the next month, i.e. September.
According to a report, the retail inflation rate in the country has reached a 15-month high in July, so the central government may increase the dearness allowance (DA) by three percent to 45 percent for its more than one crore employees and pensioners. This decision can be announced in the month of September 2023.
What is DA?
In view of the increasing inflation, the government gives dearness allowance ie DA to reduce the burden of its government employees. Dearness allowance is such money which is given to government employees to maintain the standard of living when inflation increases. Its calculation is done every 6 months according to the current inflation of the country. It is calculated according to the basic pay of the employees on the basis of the respective pay scale.
How is DA calculated?
Dearness allowance is calculated on the retail inflation rate based on the Consumer Price Index (CPI). It is borne by the common consumer. The retail inflation rate directly affects the common people, so the calculation of dearness allowance is decided on this basis. The formula for Central Government employees is as follows- {Average All India Consumer Price Index of the last 12 months (Base Year-2001=100-115.76/115.76}X100. Whereas, for Central Public Sector employees the formula is as follows- {3 Months Average of All India Consumer Price Index (Base Year-2001=100-126.33/126.33}X100.
How much will the salary increase?
In simple language, the rate of dearness allowance is multiplied in the salary which is made after adding the grade salary to the basic salary. The result that comes is called dearness allowance. Suppose your basic salary is 10 thousand rupees and grade pay is 1000 rupees. Together these two became 11 thousand rupees. If DA increases by 3 percent to 45 percent this time, then you will get Rs 4,950 as DA. Including all, your total salary will be Rs 15,950. At the same time, having 42 percent DA, you are getting a salary of Rs 15,620. In this way, by increasing DA by three percent, you will get a benefit of Rs 330 every month.
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