4% Additional DA Approved! What will be the amount of increase in salary for Central government employees?
The Union Cabinet is expected to announce the hike in Dearness Allowance (DA) on salaries for over one crore central government employees and pensioners by today. As per reports by Zee News, an announcement in this regard is likely to be made in today’s cabinet meeting. If the hike is approved, the DA for employees and pensioners is estimated to increase by 4% to 42% from the existing 38%.
Union Cabinet May Approve 42% DA Hike for Central Government Employees: What It Means for Your Salary?
Central government employees and pensioners may soon receive a 4% increase in dearness allowance (DA), taking it from the current 38% to 42%. DA is a cost-of-living benefit that compensates for inflation, based on the Consumer Price Index for industrial workers (CPI-IW) released by the labour ministry every month.
According to the calculation recommended by the 7th Pay Commission, the expected hike is 4.23%, but the government usually rounds it down. If approved, the DA hike would be effective from January 1, 2023, and benefit over one crore employees and pensioners.
Minimum DA Hike in Jan 2023 for CG Employees
If you’re wondering how much your salary would rise, here’s an example. Suppose your basic salary is Rs 49,000 per month. At 38% DA, your allowance is Rs 18,620. With a 42% DA, your allowance would be Rs 20,580, which means your take-home pay would increase by Rs 1,960 per month.
The rate of Dearness Allowance holds significant importance in the income of central and state government employees and retirees in India. The subsequent chart represents how the allowance rate has progressively increased from 0% to 42% from the year 2016 to 2023.
| Basic Salary | 38% DA | 42% DA |
| 18000 | 6840 | 7560 |
| 19900 | 7562 | 8358 |
| 21700 | 8246 | 9114 |
| 25500 | 9690 | 10710 |
| 29200 | 11096 | 12264 |
Calculation of DA Hike from Jan 2023
Starting from July 1, 2022, there will be changes to the Central DA Calculation. The current DA rate of 38% will apply to the Basic Salary, and the minimum Basic Salary will be Rs. 18000. The minimum Dearness Allowance will be Rs. 6840 and the minimum Basic Pension will be Rs. 9000, while the minimum Dearness Relief will be Rs. 3420.
Retired central government employees receive dearness relief (DR) instead of DA. With a hike in DR, their monthly pensions would also increase. For example, if you get a basic pension of Rs 24,500 per month, at 38% DR, you receive Rs 9,310, but with a 42% DR, you would get Rs 10,290 per month, which means your pension would rise by Rs 980.
The last revision on the DA hike was made on September 28, 2022, and was effective from July 1, 2022. If approved, the 4% DA hike would be the second one in less than a year, reflecting the impact of inflation on the cost of living. Stay tuned for the Union Cabinet’s decision, and check how much your salary or pension would increase if the proposal gets the green light.
What does 4% increase in DA mean?
DA refers to a cost-of-living benefit given to qualifying personnel. In September of the previous year, the government raised the DA rate by 4%, reaching 38% from July 1, 2022. This represented a rise from the previous rate, which had been 34% between January and June 2022.
Current DA for CG Employees
Central Government employees, pensioners, and family pensioners can expect a boost in their income starting from 1st January 2023, as the Union Cabinet Committee is set to approve a 4% hike in Dearness Allowance (DA) and Dearness Relief (DR). This increase will bring the DA and DR rate to 42%, and it will be applicable to all Central Government employees, pensioners, and their family members. The calculation for the DA on the basic salary for January 2023 has been done after the sixth and last calculation. Currently, the DA and DR rate stands at 38%, but with the proposed increase, the revised rate of DA and DR will be issued by the Finance Ministry.
Cabine Declared DA
Starting from January 1st, 2023, Central Government employees will receive a 42% Dearness Allowance on their basic salary. Here’s an example of how to calculate it: Let’s say an employee’s basic salary is Rs. 49,000. In January 2023, 38% of their basic pay is Rs. 1862, while 42% is Rs. 2058, resulting in DA arrears of Rs. 392. The same applies to February 2023, while the DA arrears for March 2023 will be Rs. 2154. Stay up-to-date on the latest changes to your salary with this helpful 42% DA calculation.
DA Arrears 2023
The arrears for the first two months of the DA hike will be paid out to existing CG employees by March 2023. The Dearness Allowance or Dearness Relief will be calculated using the basic pay or basic pension for existing and retired employees, respectively. This increase is a welcome relief for Central Government employees, pensioners, and their families, as it will help them cope with rising inflation and cost of living.
Daily we find news that DA is going to be approved by cabinet meeting but nothing has been done so far.Let us hope that Government should clear DA
Cabinet approved 4% D.A./D.R. for the central government employees/pensioners w.e.f.1-1-2023. Also Gas subsidy Rs.200/- raised.