DA Hike Latest News: There is some good news in store for central government employees who have been impatiently expecting the announcement of the (DA) or Dearness Relief (DR) boost!
If sources are to be believed, the central government employee DA/DR boost is anticipated to be announced in the next several weeks, most likely during the month of October. Plans for the announcement of the second half have been in the works since the Central Government announced the DA rise for H1 in March.
On July 1, 2023, this raise would go into effect. It would result in increased pay for November as well as back pay for the months of July through October. The announcement is expected to benefit 47 lakh employees as well as 68 lakh elders.
In the event that the government opted to raise it by that much, the current DA rate of 42% would become 46%.
Anurag Thakur, a Union Minister, said on March 24, 2023, that the dearness allowance (DA) would increase by 4%, from 38% to 42%.
What is Dearness Allowance ?
One of the most important components of a government employee’s salary is the Dearness Allowance, or DA.
The goal of DA is to assist workers and retirees in adjusting to the effects of inflation on their purchasing power.
The government offers central government pensioners Dearness Relief (DR), which is a similar cost-of-living adjustment allowance known as Dearness Allowance (DA) that is given to public sector employees.
The Labour Bureau’s monthly release of the Consumer Price Index for Industrial Workers, which serves as the basis for calculating the dearness allowance, is used to calculate it.
Every six months, the government adjusts the DA/DR rate to offset the effects of inflation.
When is DA revised ?
In order to counteract the declining purchasing power of employee salaries and pensions owing to inflation, the government adjusts the rate of DA every six months. As a result, the DA is often updated twice a year.
The DA was last increased by 4% to 42% in March 2023, with the new rate taking effect in January 2023.
A further 4% DA increase is anticipated to be announced soon and will take effect in July 2023. If the DA raise is announced this month, central government personnel would begin receiving higher monthly salaries in November along with back pay for the months of July through October.
How is DA calculated ?
DA is frequently determined as a portion of an employee’s base pay. For the purpose of computing DA for central government employees, the All-India Consumer Price Index (AICPI) average for the previous 12 months is taken, 115.76 is subtracted, and a percentage is then added.
How much salary will increase after DA hike ?
The current 42% DA gives a monthly boost of Rs 7,560 for those with a minimum basic salary of Rs 18,000.
A 4 percent to 46 percent increase in the DA will result in a monthly increase of Rs 8,280. This basic pay employee’s yearly compensation rise is expected to be Rs 8,640.
A 42% DA, which boosts monthly earnings by Rs 23,898, is now available to people with a maximum basic salary of Rs 56,900. This monthly increase is expected to rise to Rs 26,174 after the DA increase to 46%.
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DA Hike Latest News
The Union Cabinet enhanced the dearness allowance and dearness relief by 4% to 42% in March of this year to assist 69.76 lakh pensioners and 47.58 lakh central government employees. The cumulative impact on the exchequer would be Rs 12,815.60 crore annually, according to I&B Minister Anurag Thakur. The increase took effect on January 1, 2023.
Additionally, only a few weeks before Diwali in September of last year, the Cabinet increased additional DA by 4%. So there are high chances of DA Hike in this month.
According to sources, the Union Cabinet is likely to accept the 4% increase in Dearness Allowance (DA) for government employees during its meeting on Wednesday.
Previous DA Hike News
The central government earlier this year approved an extra payment of DA for its workers and DR for pensioners, commencing as of January 1, 2023.
In order to offset the effects of inflation and the rising cost of living, this added 4% to the current DA rate of 38% of the basic pay/pension.
Although there hasn’t been a formal announcement, central government employees and pensioners are upbeat about the likelihood of a 4% increase in DA and DR.