4% Additional DA Increase from July 2023 for Central Government Employees, Pensioners, and Family Pensioners!
Approval of Cabinet Committee on July 2023 DA: The enhancement of Dearness Allowance (DA) by 4% from July 2023 is anticipated to be approved by the Union Cabinet Committee. Typically, this approval is granted by the Cabinet Committee of Economic Affairs in September. Anticipation is high among all Central Government employees and pensioners for the announcement of a DA hike from July 2023.
In accordance with the established calculation methodology outlined by the 7th Pay Commission, the Dearness Allowance (DA) percentage is determined by considering the average All India Consumer Price Index Numbers (AICPIN) for Industrial Workers over a span of 12 months. At present, the DA stands at 42% and will be augmented to 46% effective July 1, 2023.
The announcement regarding the Dearness Allowance (DA) is typically made biannually, specifically in the months of March and September. This allowance is granted to government employees and pensioners in India, with two separate installments provided. The revised DA will come into effect in January and July of each year. These two increments in the DA are intended to mitigate the impact of rising prices of essential goods and commodities.
The announcement of the second tranche of a 4% additional Dearness Allowance (DA) for the current year, effective from July 2023, will be made shortly following the Union Cabinet Committee’s approval!
42% + 4% = 46%
DA Arrears for July and August 2023
Commencing in July 2023, Central Government Employees and Pensioners will be receiving a disbursement of 46% Dearness Allowance and Dearness Relief. This disbursement will be calculated based on their Basic Pay or Basic Pension.
For the month of July 2023, 42% of the DA has already been paid, with the remaining 4% of the DA to be disbursed as arrears.
Likewise, for the month of August 2023, 42% of the DA has already been paid, and the outstanding 4% of the DA will also be disbursed as arrears.
Moving forward to September 2023, the complete 46% DA will be provided to the eligible recipients.
Please click on the link provided to access a comprehensive video presentation.