Generally, the central government revises DA twice a year in January and July, which is officially announced later. Let us know how much the salary of the employees will increase if the government increases DA?

How much will the dearness allowance increase?

The central government is going to increase the dearness allowance once again. According to the CPI-IW data, it is being said that the government can increase the dearness allowance by 3 percent. This increase will be made for employees and pensioners under the Seventh Pay Commission, which will be effective from July 2024.

How much will the salary of employees increase?

If the government increases the dearness allowance for employees, then the upcoming DA increase will be added to the take home salary. If someone’s basic salary is Rs 55,200, then their dearness allowance at 50% is Rs 27,600. On the other hand, if the DA becomes 53 percent, then their dearness allowance will increase to Rs 29,256. That is, the salary of employees will increase by Rs 29,256 – Rs 27,600 = Rs 1,656.

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1 crore employees and pensioners will get benefit

Central government employees get 50% DA of basic salary, while pensioners get 50% DR of basic pension. DA was last increased on March 7, 2024. This increase is effective from January 1, 2024. Last year, the DA increase effective from July 1, 2023 was announced on October 18, 2023. Given the government’s deadline for DA revision, the next hike is expected to be announced soon. This increase will benefit one crore employees and pensioners.

How is dearness allowance calculated?

How the dearness allowance will increase depends on the CPI-IW data. This data is released every month by the Labor Ministry. On the basis of this data, it is decided how much the dearness allowance of government employees should increase.

Formula- 7th Pay Commission DA% = [{12 months AICPI-IW data (base year 2001=100) – 261.42}/261.42×100]

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Now there have been media reports that the basic salary of central government employees and pensioners has increased during the next increase in Dearness Allowance or Dearness Relief. Usually, DA and DR of central government employees and pensioners increase from July.

With DA and DR touching the limit of 50%, there is speculation that DA and DR will automatically be added to the basic salary. This will increase the basic salary of lakhs of central government employees and pensioners in the country. Are central government employees and pensioners expecting an increase in basic salary from July 2024? Will this change happen in future? This is the question being asked by lakhs of central government employees.

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Will DA and DR be added to the basic salary?

Speculations began when the issue of merging DA with basic salary after crossing the 50% limit came up. The Fifth Pay Commission report (para 105.11) had recommended merging DA with basic salary and terming such merger as dearness pay. Following this recommendation, 50% of DA was merged with basic salary to form dearness pay for the purpose of calculation of allowances and retirement benefits in 2004. But this was later changed. However, this change will not happen automatically. The government will have to take a decision on this.

Right now dearness allowance is 50%

Central Government Employees are getting dearness allowance at the rate of 50 percent. The government had increased the dearness allowance from 46 percent to 50 percent in March. This was implemented from January 1, 2024. However, when DA increased to 50 percent, it was believed that it would now be added to the basic salary and DA would be calculated separately. However, this will not happen. Even if DA is 50 percent, it will not be added to the basic salary. Even after the DA increases next time, it will be calculated on the basis of basic salary.

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Retail inflation has come down to 5.66 percent from the RBI’s upper limit of 6 percent in March 2023, but it is still far from the Reserve Bank’s target of 4 percent, so inflation remains. Keeping in mind the rising inflation, the government gives DA-DR to the employees and pensioners.

Earlier, a revision of 4 per cent was done last month, which became effective from January 1, 2023. After the 4 per cent hike, the DA of central government employees has increased to 42 per cent. DA was increased by 4 percent in September 2022, which became effective from July 2022.

There will be an increase in salary and pension

As per reports, now a further hike of 3-4 per cent in DA is expected for the 7th Pay Commission, which will be effective from July. As per the latest data, there are 47.58 lakh central government employees and 69.76 lakh pensioners. According to the CPI-IW data released by the Labor Bureau under the Ministry of Labor and Employment, the government sets the rate of Dearness Allowance.

Revision happens every year in January-July

DA and DR are revised twice a year in January and July. Dearness allowance is given to government employees, while dearness relief is given to pensioners. DA is given to the employees on the basis of basic salary of the employees, while DR is given on the basis of basic pension.

The Jharkhand government on Thursday increased the dearness allowance for its employees from 34 per cent to 42 per cent. The decision to increase the rate of DA was taken in the state cabinet meeting chaired by Chief Minister Hemant Soren. The DA has been increased as per the approved formula based on the recommendations of the 7th Central Pay Commission.

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Along with the announcement of this allowance, the government has also issued a notification. This allowance is given to pensioners and employees (Central Staff) to provide relief from inflation. The West Bengal government on Friday issued a notification to give Dearness Allowance at the rate of 6% of the basic salary to employees (Central Staff), pensioners and family pensioners, which will be effective from March 1.

This increase has been done under 6 March. As per the government notification, the 6% hike in DA is due against the total 3% announced in December 2020 and 3% in January 2021.

How will the dearness allowance be calculated?

Information has also been given in the notification as to how the Dearness Allowance will be calculated. DA will be calculated as per Revised Basic Salary plus non-allowances. If there is no allowance then Basic Salary and DA will be calculated.

This increased DA will be applicable to teachers and other employees (Central Staff) of government-aided institutions as well as employees (Central Staff) of local bodies. On the other hand, in the case of pension, it will be the responsibility of the pension disbursing authority to calculate the amount of dearness relief on the revised pension and allot the amount of pension amount in each individual case.

DA is less than the central government

An employee of the state government told that even after this increase, the DA given by the central government to its employees (Central Staff) will be 32% less. Many organizations of state government employees (Central Staff) have been demanding DA at par with the Centre. Ignoring warnings of action, they went on a 48-hour ‘pen down’ agitation earlier this week.

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DA Hike latest news: Lottery of central employees and pensioners has been started. There has been a big increase in their dearness allowance for January 2023. Now in the coming days their DA/DR is going to increase drastically. The figures of dearness allowance have been announced. Now all that’s left is approval. It is expected that the new dearness allowance will be approved by the end of February or the beginning of March. There will be a jump of 4% in the dearness allowance of the employees. This increase will be for January 2023. But, its payment will be in March. At the same time, the arrears of two months will also be given to the employees.

Update about DA Hike

The dearness allowance (Mehngai bhatta) of central government employees has increased by 4%. If we look at the inflation chart under the 7th pay commission, the index has increased by 2.6 points since July 2022. A total increase of 4.40% has been recorded in this. In such a situation, the dearness allowance of the employees has reached 42%. Whereas, in the 6th pay commission, this figure has reached 222%. According to the new AICPI index, there will be a 4% increase in dearness allowance and dearness relief for employees and pensioners. In December 2022, the index has decreased by 0.2 points to 132.3 points.

How to know how much DA Hike will be?

Dearness Allowance (Mehngai Bhatta) to central employees and pensioners is decided on the basis of Consumer Price Index for Industrial Workers (All-India CPI-IW). For December 2022, the dearness allowance will be 42.40% on the basis of CPI-IW numbers. But, if it is not increased in decimal then the dearness allowance will be fixed at 42%. For this number, the Labor Bureau prepares an index on the price of retail inflation from 317 markets of 88 industrial centers.

How to know how much DA will increase? see chart

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The government made it clear on Tuesday that releasing 18 months’ arrears of Dearness Allowance is not practical. During the Corona period, dearness allowance (DA) received by central employees and dearness relief (DR) of pensioners was banned.

Minister of State for Finance Pankaj Chowdhary made it clear in a written reply to a question in the Rajya Sabha on Tuesday that it is not practical to release the outstanding installments of dearness allowance and dearness relief to central government employees and pensioners that were stopped during the Corona period. Due to the adverse effects of Covid in the year 2020 and the welfare measures taken by the Centre, its fiscal impact continued till after the financial year 2020-21.

Many applications received by the government

Chaudhary said that various central government employees and pensioners associations had given many applications to the government regarding the release of DA and DR for 18 months. Significantly, in view of the economic disruptions caused by the epidemic, the government had banned the 3 installments of DA and DR payable from January 1, 2020 to January 1, 2021.

Apart from the Center, there has been an increase in the DA of the employees of these states.

It is noteworthy that the Modi government had given a big gift to the central employees a month before Diwali. The central government had increased the dearness allowance (DA) of central employees by 4 percent. Central employees used to get 34 per cent DA, which has now increased to 38 per cent. Apart from the central government, the governments of Jharkhand, Chhattisgarh, Haryana, UP, Karnataka, Punjab and Assam have announced an increase in the DA of their employees.

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The Pensioners and Welfare Department, which comes under the Ministry of Personnel, has said that the Dearness Allowance to the pensioners will be paid on the basis of old and original basic pension. For this, the concerned department has also issued the official notification.

Government issued memorandum

The Pensioners and Welfare Department has said that it had received several queries related to this, in which it was asked whether Dearness Allowance is being given on basic pension or is it reduced after commutation on pension? Giving information on this, the department said that dearness relief has been given on the basic pension before commutation or on the basic pension before commutation on the basis of the recommendations of the commission. After deduction of commuted pension, dearness relief is not being paid on pension.

This clarification from the department has cleared the dilemma of pensioners that dearness relief is paid to them on the basis of original basic pension and not on the basis of reduced pension after commutation.

Pensioners get dearness relief

It is worth noting that under sub-rule 52 of the Pension Rules 2021, pension relief is paid to retired employees amid rising inflation. This amount is given to the pensioner or his beneficiary. Let us tell you that like dearness allowance, the government announces increase in it every half year and at the time of increasing DA for employees, the increase of DR for retired employees is announced.

How much is the DR at this time?

Let us tell you that this time under the 7th Pay Commission, the Central Government has increased the dearness allowance of the employees to 38 percent. Along with this, dearness relief to pensioners has also been increased to 38 percent. Let us tell you that this dearness relief for pensioners will be calculated on the basis of basic pension before commutation. 38 percent dearness relief has been implemented from July 1, 2022. 

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The Department of Pension and Pensioners’ Welfare under the Ministry of Personnel, Public Grievances and Pensions has issued a clarification on the benefits of DR being given to retired Central Government employees. The government has said that the calculation of DR is given on the basic pension. An office memorandum has also been issued in this regard.

Government clarified on DR

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New Delhi. After Uttar Pradesh, Gujarat and Delhi, now the Haryana government has given Diwali gift to the employees and pensioners who are taking salary according to the 7th Pay Commission. Haryana Government has increased the Dearness Allowance (DA Hike) by 4 percent. Now DA has increased from 34 to 38 percent. The increased dearness allowance will be applicable from July 1. In November, along with the salary of October, the arrears of 3 months will also be deposited in the account of employees and pensioners. Let us tell you that the central government had also increased the dearness allowance of its employees by 4 percent.

Additional Chief Secretary Anurag Rastogi has issued an order to increase DA. There are 2.85 lakh employees working in Haryana. Out of these, around 2.70 thousand are getting salary under the 7th Pay Commission. At the same time, there are 2.62 lakh pensioners. With the increase in DA, the financial burden on the government exchequer will increase by more than 65 crores. Due to 4 percent increase in dearness allowance, the salary of the employees will increase from Rs 800 to Rs 3500

UP government increased DA

UP CM Yogi Adityanath has also given gifts to the employees before Diwali. The Uttar Pradesh government on Monday announced to increase the dearness allowance and dearness relief of its employees and pensioners from 34 percent to 38 percent. This new rate will be considered applicable from July 1.

Dearness Allowance has also increased in these states, the Central Government has also increased the dearness allowance of central employees and pensioners. On September 28, ahead of the festive season, the central government had approved a 4 per cent hike in Dearness Allowance (DA) and Dearness Relief (DR) of its employees. This increase has been implemented with effect from the retrospective date of July 1, 2022. The Delhi government has also increased the dearness allowance of the employees by 4 percent. Similarly, Rajasthan, Madhya Pradesh and Uttarakhand governments have also increased dearness allowance.

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