The central government periodically raises the Dearness Allowance to lessen the effects of inflation. The most recent Consumer Price Index for Industrial Workers (CPI-IW) is used to determine the DA for central government employees. It is usually revised twice every year — in January and July.
DA hike for central govt employees
Anurag Thakur, Union Minister of Information & Broadcasting, said on March 24, 2023 that Dearness Allowance (DA) for central government employees and Dearness Relief (DR) for central government pensioners have both increased by 4%. With the most recent increase, the DA for central government employees and the DR for pensioners will both rise to 42%.
How much salary will rise with a 4% DA increase?
The increase in DA will help state government employees, pensioners, and family pensioners who receive government pensions.
Dearness Allowance is determined as a percentage of basic pay. Every government employee and pensioner receives a dearness allowance and dearness relief.
Dearness Allowance calculation
For example, a state government employee gets a basic salary of Rs 25,600 per month. At 38 per cent, his dearness allowance was Rs 9728. As DA jumps to 42 per cent, his DA will rise to Rs 10752. So, with the latest hike, his salary will be raised by Rs 10752- Rs 9728= Rs 1,024. Dearness relief calculation
Government pensioners are entitled to dearness relief, which is identical to DAs. Dearness relief has also been increased by 4%. The monthly pensions of retired state government employees will increase as DR rises.
For example, a state government pensioner gets a basic pension of Rs 40,100 per month. At 38 per cent dearness relief, the pensioner used to get Rs 15,238 now. As DR rises to 42 per cent, he will get Rs 16,842 every month. So, his pension will rise by Rs 1,604 per month.
