DA Hike Announcement For Central Govt Employees Likely Today

4% Additional DA Hike Announcement For Central Govt Employees Likely Today

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%.

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.

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

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.