DA Hike in Tripura: Tamil Nadu Chief Minister M.K. Staley said that the DA hike, effective from January 1, 2023, will benefit around 16 lakh employees.
new Delhi. There is good news for Tamil Nadu government employees. In fact, Tamil Nadu Chief Minister M.K. Stalin said on Sunday that Dearness Allowance for government employees, including teachers, pensioners and family pensioners, has been increased from 34 per cent to 38 per cent with immediate effect. He said that this increase, effective from January 1, 2023, will benefit about 16 lakh employees.
However, this move of the state government will put an additional annual burden of Rs 2,359 crore on the exchequer. Regarding the protest by government teachers demanding ‘equal pay for equal work’, the Chief Minister said that a committee of three top officials would be constituted under the chairmanship of Finance Secretary (Expenditure). Stalin said that the state government has decided to take steps based on the recommendations of the committee.
What happens to DA
In view of rising inflation, the government gives dearness allowance ie DA to reduce the burden of its government employees. DA is calculated on the basic pay of employees and pensioners. DA is revised twice a year from January to July.
How DA is 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.
For Central Government employees, the formula is {Average All India Consumer Price Index for last 12 months (Base Year-2001=100-115.76/115.76}X100.
The formula for Central Public Sector Employees is as follows- {3 Months Average of All India Consumer Price Index (Base Year-2001=100-126.33/126.33}X100
