The Central Government revises the rates of dearness allowance and dearness relief of central employees twice a year in January and July, which depends on the half yearly data of AICPI index. After January, now new rates for July 2023 are to be released.
Central Employee DA Hike 2023: There is good news for central employees and pensioners. The wait for dearness allowance increase is going to end soon. According to the latest media reports, between Navratri-Dussehra, the Modi government at the Center may announce an increase in dearness allowance and dearness relief for employees and pensioners, while the benefit of increased dearness allowance (DA) and arrears may be given in the October salary. Maybe, which will be available in November. Its benefit will be available to 47.58 lakh employees and about 69.76 lakh pensioners. However, official confirmation is yet to be done.
By when will dearness allowance increase by 3%?
Actually, the Central Government revises the rates of dearness allowance and dearness relief of central employees twice a year in January and July, which depends on the half yearly data of AICPI index. After January, now new rates for July 2023 are to be released. According to the AICPI index data from January to June 2023, DA is set to increase by 3 percent. At present the benefit of dearness allowance is 42%, which is expected to increase to 45% after the increase. It is reported that the Finance Department has also started preparations for the proposal for revision of DA rates, which can be placed in the cabinet meeting soon. However, the final decision has to be taken by PM Modi.
New rates will be applicable from July
According to the latest media reports, a proposal for 3% DA increase can be brought in the cabinet meeting to be held in October. After getting approval from here, the Central Finance Department can issue orders regarding 45% dearness allowance. Since it will be implemented from July 1, 2023, employees-pensioners will also get arrears for 3 months of July, August and September. Other allowances are also sure to increase.
For example, if the basic pay of an employee is Rs 18,000 and he currently gets dearness allowance at the rate of 42 per cent, then it comes to Rs 7,560, which will increase to Rs 8,100 at the rate of 45 per cent. This means that the salary received by the employees will directly increase by Rs 540, while the maximum basic pay of Rs 56,900 will increase to Rs 25,605.
Know how dearness allowance is compared
DA for Central Government employees is calculated on the basis – {Average All India Consumer Price Index of last 12 months (Base Year-2001=100-115.76/115.76}X100. For Central Public Sector employees, the formula is as follows – {Average of 3 months All India Consumer Price Index (Base Year-2001=100-126.33/126.33}X100.
In other words, the amount of dearness allowance is calculated on the basis of multiplying the current rate of DA and basic salary. For example, if your basic salary is Rs 18 thousand and DA is 45 percent, then your DA formula will be (45 x 29200) / 100. Similarly, dearness relief for pensioners is also calculated.
Will I get 18 months DA arrears or not?
Central employee pensioners have been demanding 18 months of DA arrears for a long time, but till now no positive response has been received from the government in this regard, although the government has already clarified that still The fiscal deficit of the Central Government is running more than double the level shown in the FRBM Act, in such a situation it is not possible to pay the arrears. Here, recently, All India Defense Employees Federation (AIDEF) General Secretary C. Sreekumar said in New Delhi on 20 September.
The issue of outstanding DA arrears of 18 months was once again raised in the National Council (JCM) staff side meeting. He has urged the Secretary (P), DoPT, Central Government, that DA arrears are the right of central employees and pensioners, hence DA/DR arrears should be issued as a gift on this Diwali.
