Cabinet Approves 4% DA to Central Government employees

Current DA for Central Govt Employees is 42% (38% + 4% = 42%)

The Union Cabinet Committee has approved an increase in the Dearness Allowance by 4%, which will be effective from the 1st of January 2023. With this approval, central government employees, pensioners and family pensioners will receive a total of 42% DA and DR on their basic pay or basic pension. The revised rate will be reflected in the salary for March 2023, while the arrears for January and February 2023 will be granted separately after an official order is issued by the Finance Ministry.

The Cabinet has given its approval for the disbursement of another installment of Dearness Allowance to Central Government employees and Dearness Relief to Pensioners, which is set to be due from the 1st of January 2023.

The Cabinet has given the green light to release an extra Dearness Allowance installment to Central Government employees and Dearness Relief to Pensioners, due from Jan 1st, 2023. This additional installment will result in a 4% rise from the current rate of 38% of the Basic Pay/Pension to counteract inflation. The annual impact on the exchequer from both Dearness Allowance and Dearness Relief will be approximately Rs.12,815.60 crore. This change will benefit around 47.58 lakh Central Government employees and 69.76 lakh pensioners, in accordance with the 7th Central Pay Commission’s recommendations.

4% Additional Dearness Allowance from 1.1.2023

The Consumer Price Index (IW-BY 2016=100) from July-December 2022 showed a 4% rise in Dearness Allowance, pushing the total to 42%.

How to calculate 42% DA on Basic Salary?

If the starting basic salary of a Central Government employee is Rs. 49000, then the calculation for Dearness Allowance (DA) will be as follows:

DA Arrears 2023 for CG employees

Usually, Dearness Allowance hikes are declared in March and September, taking effect from the following January and July, respectively. Accordingly, Dearness Allowance for the first two months of each period will be provided as arrears. On 1 January 2023, a further 4% increase in the Dearness Allowance rate will be applicable to all Central Government employees, pensioners, and those receiving family pensions. Existing CG employees will be provided with a 42% Dearness Allowance by March 2023, and arrears for the months of January and February 2023 will be paid out then as well. The Dearness Allowance or Dearness Relief will be calculated using the existing and retired employees’ respective basic pay or basic pension.

7th CPC DA Chart 2023

The Dearness Allowance is a major element of income for state employees and pensioners in India. The chart below shows how the allowance rate has risen from 0% to 42% between 2016 and 2023.

DA Calculator on Basic Salary

The Dearness Allowance (DA) percentage is consistent across all categories of Government workers, yet the actual amount differs from one person to another. This is based on the basic salary of each individual. A simple online tool is available for calculating the exact DA for all Central Government employees. All you need to do is choose the pay matrix level and basic pay, and press the Calculate button. The calculator will then provide an accurate answer. Click to Calculate Your DA

How much increase in DA for Central Government employees from 1.1.2023

All Central government employees, pensioners, and family pensioners can look forward to an increase in their Dearness Allowance from 1st January 2023! The amount of the increase will be based on basic pay or basic pension, but it is expected to be around 4 percent.

MP Govt Announces 4% DA

In a recent development, the state cabinet of Madhya Pradesh, led by Chief Minister Shivraj Singh Chouhan, has announced a 4% increase in dearness allowance for government employees and pensioners. The retrospective hike will be effective from January 1, 2023. The announcement was made by Dr. Narottam Mishra, the Home Minister, in a media briefing held after the cabinet meeting. The decision is estimated to put a financial burden of approximately Rs. 265 crore on the state exchequer for the current fiscal year. Stay tuned for further updates on this important development.

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