The government had cited the serious economic crisis and pressure of government finances as the reason for this at that time. Since then, government employees are waiting for 18 months DA arrears. Now on this issue, MP Anand Bhadoria asked a question in the Lok Sabha on 11 August 2025, in response to which the government gave official information.

What is DA and DR?

Dearness Allowance (DA) is given to government employees to reduce the impact of inflation. Similarly, Dearness Relief (DR) is given to pensioners to reduce the impact of inflation on their income.

Why were DA and DR installments stopped for 18 months?

The government said that the three installments due from January 2020, July 2020 and January 2021 were stopped in view of the economic shock and financial pressure of Kovid-19. Revenue fell during the pandemic and the government had to spend on many additional welfare schemes, so it was decided to stop this amount.

Will there still be financial pressure?

The MP asked whether the government is still under financial pressure and is the country on the verge of bankruptcy? In response, the government said that this is not the case. The fiscal deficit of the Center was 9.2% in the financial year 2020-21, which has come down to 4.4% in the budget estimate 2025-26. That is, the financial status has improved, although the impact of Covid remained for a long time.

Will I get the outstanding DA and DR amount?

The government clearly stated that the economic impact of COVID-19 and the fiscal pressure to fund the schemes launched at that time continued even after 2020-21. Therefore, it is not possible to release the DA/DR arrears amount for 18 months.

Due to government financial pressure during Covid-19, DA and DR installments of 18 months were stopped. According to the government, the financial situation is better now, but it is not possible to pay the arrears of that time in the budget. Employees and pensioners are getting the future installments regularly, but the old amount that was stopped will not be returned.

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It is scheduled to be announced at the end of September. Let us tell you, it has become clear from the data of AICPI index from January to June 2024 that how much jump will be seen in dearness allowance.

Central employees and pensioners receiving salary under the 7th Pay Commission will get direct benefit from this. Dearness allowance is being given 50 percent from January 2024. In the month of June, there was a big rise of 1.5 points in the AICPI index. This has also led to a jump in the dearness allowance score.

What is Dearness Allowance (DA)?

Dearness Allowance or DA is an important part of the salary of government employees and pensioners. This allowance is given to deal with rising inflation. DA helps in maintaining the purchasing power of employees and increases their income.

Also Read: Govt Jobs: Great opportunity to get a job in the Ministry of Communications, you will get a salary of 142000

The central government reviews DA twice a year, in January and July. The rate of DA may vary depending on the location of the employee. This allowance helps protect employees from the effects of inflation.

By what percentage will dearness allowance increase

According to the information, the numbers of the AICPI-IW index between January and June 2024 have made it clear that from July 2024, employees will get an increased dearness allowance of 3 percent. The June AICPI index has seen a jump of 1.5 points. In May, it was at 139.9 points, which has now increased to 141.4. The score of dearness allowance has gone up to 53.36. It is clear that this time the dearness allowance will increase by 3 percent. In January, the index number was at 138.9 points, due to which the dearness allowance increased to 50.84 percent.

It could be announced at the end of this month

The announcement of dearness allowance for central employees may be made at the end of September. But, it will be implemented only from July 2024. The payment for the intervening months will be made as arrears. Under the 7th Pay Commission, central employees and pensioners will be paid 53 percent dearness allowance. If sources are to be believed, it may be announced in the cabinet meeting to be held on 25 September. It has been included in the agenda. Only the formal announcement is left.

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How much will DA increase?

If media reports are to be believed, then there may be an increase of 4 to 5 percent in dearness allowance for the half year from January to June. If the allowance increases even by 4 percent, then the DA of central employees will increase to 50 percent. Let us tell you that at present the allowance is 46 percent. The government had increased the allowance by 4 percent for the second half of the year 2023. Due to this, the allowance for the July to December half year has increased to 46 percent. If there is an increase of 5 percent in the allowance then it will cross 50 i.e. 51 percent.

HRA increases as allowance increases

As soon as the allowance of central employees is 50 percent or more, HRA will be revised. According to the recommendation of the Seventh Pay Commission, HRA will be revised when the allowance is 50 percent or more. For increase in HRA, cities have been divided under three categories – X, Y & Z.

How much will HRA increase?

Currently, employees living in cities/towns X,Y & Z are getting 27, 18 and 9 percent HRA respectively. But after the increase, if the central employee lives in X category cities/towns, then his HRA will increase to 30 percent. Similarly, the HRA rate for Y category will be 20 percent and for Z category it will be 10 percent. It means that due to the increase in HRA along with DA in the new year, there will be a huge increase in the salary of central employees.

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Whereas, the employees are also demanding to increase the fitment factor. If the government accepts both the things, then there will be a bumper increase in the salary of the employees.

Dearness Allowance (DA) is an important part of the salary for central employees, the purpose of which is to reduce the effect of inflation. To deal with rising inflation, the effective salary of government employees is revised from time to time. The Central Government revises DA twice every year in January and July. Now the DA was expected to be increased in January 2023, but the third month of March 2023 has started, but till now no decision has been taken on DA hike.

Salary will increase as the fitment factor increases, the fitment factor plays a very important role in the salary received by central employees. Apart from the allowances of these employees, their basic salary is fixed on the basis of fitment factor. Let us tell you that there has been no change in the fitment factor since 2016.

Since then 2.57 per cent fitment factor is applicable. Central employees are demanding to increase it. The employees want the government to increase the fitment factor to 3.68 per cent. At present, central employees are getting 2.57 percent fitment factor, according to which the minimum basic salary of central employees is Rs 18,000. If the fitment factor is made 3.68 per cent, then the minimum basic salary will directly increase by Rs 8,000 to Rs 26,000.

Salary will increase on approval of DA hike

Central employees are also demanding an increase in dearness allowance. Last time in July 2022, the central government had increased DA by 4 percent. In such a situation, DA is also expected to be increased by 4 percent in January 2023. At present, a total of 38 percent DA is being given on the basic pay of central employees.

After an estimated 4 per cent increase, the total DA will increase to 42 per cent. If the fitment factor is increased to 3.68 percent, then the basic salary will increase and the employees will get a huge amount in salary due to the increase in DA.

Current salary calculation of central employees (7th pay commission salary calculator)

• The minimum basic pay of the present central employees is Rs 18,000 per month.
• On the current DA 38% of basic pay, dearness allowance is available at Rs 6840 per month.
• The current fitment factor is 2.57 per cent.
• In this way, the current minimum salary is 24,840 per month (excluding the rest of the allowances).

Salary calculation after possible increase (7th pay salary calculator)

• After the expected fitment factor is 3.68 per cent, the basic pay will increase by Rs 8,000.
• The minimum basic pay of potential central employees will be Rs 26,000 per month.
• 10,920 dearness allowance will be given per month if the potential DA is implemented at 42 percent.
• In this way, the total possible minimum salary will be Rs 36,920 per month (excluding the rest of the allowances).

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In this, dearness allowance (DA) of central employees can be approved. It is believed that the allowance of central employees can be increased by four percent. At present, central employees get 38 per cent DA, which can be increased to 42 per cent. This will benefit more than one crore central employees and pensioners. The increased allowance will be applicable from January 1, 2023.

That is, he will get two months’ arrears of DA in the salary of March. The government hikes the DA of its employees twice a year. Dearness Allowance for employees and pensioners is calculated on the basis of the Consumer Price Index for Industrial Workers (CPI-IW) released by the Labor Bureau every month. The Labor Bureau is a part of the Ministry of Labour.

Earlier, DA was increased by four percent from July 1, after which it increased to 38 percent. According to Shiv Gopal Mishra, general secretary of the All India Railwaymen’s Federation, the CPI-IW for December 2022 was released on January 31, 2023. Accordingly, the increase in dearness allowance works out to 4.23 per cent.

How much will the salary increase

now, if the basic salary of an employee is Rs 1,8000, then according to 38 percent, he gets Rs 6,840 DA. If the DA becomes 42 per cent, the employee will get Rs 7,560 as dearness allowance. That means he will get Rs 720 more. That is, according to the year, there will be a benefit of Rs 8,640. Similarly, if the basic salary of a government employee is Rs 56,000, then dearness allowance at the rate of 38 per cent is Rs 21,280. After a four per cent increase, it will become Rs 23,520. There will be an annual benefit of Rs 26,880.

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Employees get the gift of Dearness Allowance twice every year. Dearness allowance is to be announced for the first time in this year. It is expected that there will be an increase of 3% in his DA. In such a situation, his total DA will reach 41%. Right now he is getting 38% DA. As soon as the dearness allowance is announced, there will be a big jump in the salary of central government employees.

Dearness Allowance (DA) will be increased by 41%

Dearness allowance news for January 2023 will be announced in January. It is expected to get approval from the cabinet in March. It is clear from the inflation figures of industrial workers that have come so far that there will be an increase of 3%. Earlier, the dearness allowance of July 2022 was announced, in which there was an increase of 4 percent. Due to rising inflation, the employees also got the gift of higher dearness allowance to deal with it. His DA was increased from 34 per cent to 38 per cent.

How much will the salary increase due to 3 percent increase?

According to the pay matrix of the 7th Pay Commission, the basic salary range of Central employees at Level-3 ranges from Rs 18,000 to Rs 56,900. If DA Hike increases by 3% in January, then the total DA will reach 41%.

Calculation at 41% DA

1. Basic salary of the employee Rs 18,000
2. Estimated DA (41%) Rs 7,380/month
3. New DA (38%) Rs 6,840/month
4. By how much DA increased 7380–6,840 = Rs 540/month
5 Increase in annual salary 540X12 = Rs 6,480

This means that the salary of every employee drawing a basic salary of Rs 18,000 will increase by Rs 540. On annual basis it will be Rs.6480. 

If you look at the maximum salary bracket, then how much money will increase?

Calculation at 41% DA

1. Basic salary of the employee Rs 56,900
2. Estimated Dearness Allowance (41%) Rs 23,329/month
3. Dearness Allowance till now (38%) Rs 21,622/month
4. How much Dearness Allowance increased 23,329-21,622= Rs 1,707/month
5. Increase in annual salary 1,707X12 = Rs 20,484

The salary of the employees coming in the maximum basic salary bracket of Level-3 will increase by Rs 1707 every month. There will be an increase of Rs 20,484 on an annual basis.

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According to the information given by the Finance Ministry, this rate is valid from January 1, 2023 to March 31, 2023.This rate is effective from January 1, 2023.

What is GPF: Government employees are eligible in the General Provident Fund ie GPF. Under this, employees are allowed to contribute a certain percentage of their salary to GPF. Whereas, the total amount accumulated during the employment period will be paid to the employees at the time of their retirement. The contribution made to GPF is also exempt under section 80C of income tax.

Explain that the government revises the interest rate on GPF every quarter. This interest rate is also applicable to All India Services Provident Fund, Armed Forces Personnel Provident Fund, State Railway Provident Fund and other government-run provident funds.

When to decide on allowance: The central government can take a decision on dearness allowance or dearness relief of its employees in March. This decision will be effective from 1 January 2023.It is estimated that the government may increase the interest rate by up to 4 per cent for the first half.

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DA became 38 percent of the basic salary.

Before this increase, 34 percent DA and DR were given to employees and pensioners by the state government. Now after the increase, it has increased to 38 percent of the basic pay. This is the second increase in DA in the year 2022 by the state government. With the change in DA from July, the employees will get six months arrears at once.

DA was increased by 3 percent in September

Earlier, the Odisha government had announced a 3 percent increase in DA and DR for employees and pensioners in September. At that time it was increased to 34 percent. Earlier, the Meghalaya government has increased the dearness allowance of state employees and pensioners by 4 percent. Here also the increase in dearness allowance has been implemented from July 2022.

Recently, in Tripura too, a bumper increase of 12 percent has been made in the DA and DR of state government employees and pensioners. Apart from this, the salary of contractual employees has also been increased in the state. After this change, more than one lakh employees and about 80 thousand pensioners will be benefited. According to CM Manik Saha, the state government will bear an additional burden of 120 crores every month.

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That means from a week onwards his Dearness Allowance (DA) will be 38 percent. In March, the Central Government had increased the Dearness Allowance (DA Hike) by 3 per cent to 34 per cent. Earlier, DA was being paid at the rate of 31 per cent. Now with an increase of 4 percent, it will reach 38 percent.

Good news for more than 1 crore employees and pensioners

The Labor Ministry had released the figures for the first half of the AICPI (All India Consumer Price Index). These include the number from January to June. The AICPI index has reached 129.2 points in June. It is clear from this that the dearness allowance will increase by 4 percent in the increase for July 2022. Experts have also claimed that after increasing by 4 per cent, DA will be 38 per cent. More than 1 crore central employees and pensioners will get its direct benefit.

DA as for AICPI data

The Labor Ministry releases the AICPI data for the previous month at the end of every month. In this, in comparison to the index inflation, it shows how much allowance should be given to the employees to deal with inflation. It is clear from the figures of the first half that there should be an increase of 4 percent in DA. Meaning the total DA will increase to 38 percent. The employees union is also hopeful that a decision will be taken on this by the end of September. This will give a big relief to the central workers.

Whose salary will increase?

Calculation on 7th CPC Minimum Salary Rs 18000

1. Basic salary of the employee Rs 18,000
2. New dearness allowance (38%) Rs 6840/month
3. Dearness allowance so far (34%) Rs 6120/month
4. How much dearness allowance increased 6840-6120 = Rs 720/month
5. Increase in annual salary 540X12 = Rs 8640

Calculation on 7th CPC maximum salary Rs 56900

1. Basic salary of the employee Rs 56900
2. New dearness allowance (38%) Rs 21622 / month
3. Dearness allowance so far (34%) Rs 19346 / month
4. How much dearness allowance increased 21622-19346 = Rs 2276 / month
5. Increase in annual salary 1707X12 = Rs 27312

Note: This is an estimate based salary, the final salary will be made only after adding allowances like HRA to it.

Benefit will also be available in other allowances

By the end of the year, only Dearness Allowance for central employees will not increase. Rather, other allowances will also increase. This includes Travel Allowance and City Allowance. At the same time, there will be an increase in Provident Fund and Gratuity for retirement. This is because, the increase in dearness allowance affects all these allowances.

HRA is not included in the calculation

Under the 7th CPC, according to the dearness allowance of 38 percent, the total annual dearness allowance on the basic salary of Rs 56900 will be Rs 259,464. But, if we talk about the difference as compared to 34 percent, then the annual increase in salary will be Rs 27312. However, the calculation of how much the final salary will be will be known after adding other allowances including HRA. This simple calculation has been done for an idea only.

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