On Wednesday, the Union Cabinet announced a four per cent hike in the Dearness Allowance (DA) as a festival bonanza for Central government employees and pensioners.
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Union cabinet, Information and Broadcasting Minister Anurag Thakur briefed the media about the cabinet decision. "Dearness Allowance for Central government employees and Dearness Relief for pensioners has been increased by 4 per cent. The DA hike will be implemented from 1, July 2023," he said.
With the decision, the DA will increase to 46 per cent from the existing 42 per cent. This will be effective from July 1, 2023. Besides the hike in the salary of November month, employees will get arrears from July to October. The government’s move will benefit over 47 lakh employees and 68 lakh pensioners.
The dearness allowance for employees and pensioners is worked out on the basis of the latest Consumer Price Index for Industrial Workers (CPI-IW) brought out by the Labour Bureau every month.
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Expected salary hike:
Considering the minimum basic salary, which is Rs 18,000, the DA of 42 per cent will add another Rs 7,560 to it. Now as the DA rose to 46 per cent, the monthly DA will become Rs 8,280. Similarly, if the maximum basic salary i.e. Rs 56,900 is considered, the 42 per cent DA on it will come out to be Rs 23,898. Now considering the 4 per cent announced hike, the DA will become Rs 26,174.