PC: CompareRemit
The central government has announced an increase in Dearness Allowance (DA) for central employees during the cabinet meeting today. The government has increased DA for central employees by 4%. DA for central government employees has increased from the current 42 percent to 46 percent. The approved DA increase will be effective from July 1, 2023.
The central government occasionally increases DA in an effort to tackle inflation. It is usually updated in January and July. However, this time the increase in DA was announced late.
How is DA calculated for central government employees?
The latest Consumer Price Index for Industrial Workers (CPI-IW) is used to determine the Dearness Allowance (DA) for central government employees.
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DA is determined as a part of an employee's base salary. For the purpose of calculating DA for Central Government employees, the All India Consumer Price Index (AICPI) average for the last 12 months is taken, 115.76 is subtracted, and then a percentage is added.
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How much will the salary of government employees increase after a 4% increase in DA?
For example, suppose the basic salary of the Central Government is Rs 36,500. With 42 percent DA, employees will get Rs 15,330. However, after the 4% increase, DA has now become 46% and they will get Rs 16,790 per month.
