DA Hike announcement for Central Employees. Arrear approval and expected date for Dearness Allowance

Last Updated on October 4, 2023 by Brajesh

DA Hike announcement for Central Employees: Good news for employees as they will receive higher salary with arrear of dearness allowance, know the exact date.

7th Pay commission DA hike: Good news for Central employees is coming this festival season as their Dearness Allowance is going to increase very soon. Apart from DA, Central Government employees are also going to get arrears on dearness allowance. Dearness Allowance will help the central government employees to cope with the rising cost of living. Hike in Dearness Allowance will be implemented from July 2023. To Know the full details, read the entire article carefully.

When will Employee gets the revised Dearness Allowance

Central Government employees who were drawing salary under 7th Pay Commission ware waiting for revised DA effective July 2023. Government generally takes 2 month to  finalise the actual figures and announce the same for entire workforce under 7th Pay Commission. Dearness Allowance for January 2023 was announced 2 months later i.e. in March 2023. Even though there is no official announcement but it is expected that for Dearness Allowance effective July 2023 will be  announced in the month of October 2023.

How much Dearness Allowance is expected to increase?

According to media reports Central Government is likely to announce the latest DA hike by October 2023. Employees gets DA, while retired employee i.e. pensioners gets DR and both of them are eligible for this benefit of expected hike in DA. DA & DR is revised twice every year effective from January and July. At present more then a crore of employee and retired pensioners are getting a DA of 42%

Labour Bureau which is a wing of Labour Ministry announces Consumer Price Index for Industrial Workers (CPI) every month basis which dearness allowance for employee and pensioners is calculated. Latest CPI was figure was 3.3 points higher then last month data. CPI for the month of July is 139.7.

Going by the Cost Price Index figure from January to June 2023, 4 percent increase in DA is clearly justified, As per the calculation, 46.24 percent is the final outcome, however since decimal cannot be taken into base hence 46 percent can be a revise DA figure for Central Government Employees effective July 2023. Hence Da can be revised by 4 percent which will increase the current Dearness Allowance from 42 percent to 46 percent from July 2023 for Central Government employees.

Arrear on Dearness Allowance

Central Government employees under 7th Pay commission is eagerly waiting for Government Approval on Dearness Allowance hike, once the same will get Government nod, revise Da will be implemented in the pay structure. As per reports, DA hike can be approved in October 2023, hence employee will get a higher salary from October 2023.

As Da hike will be effective from July 2023, hence arrear from July to September i.e. for 3months will also be credited along with higher salary to the account of employees.

Confusion on DA rates of 3 percent and 4 percent

All India Railway Men Federation General Secretary Shiva Gopal Mishra has told that Federation is demanding 4% hike in DA, but the calculation for DA hike is coming around a little over 3 %.. His statement went viral and 3 percent increase in Da got momentum in the public, however no official justification is given for 3 percent increase in demand.

CPI numbers : DA Hike announcement for Central Employees

There is a constant push on the CPI  numbers due to inflation in the economy. Higher CPI figure will result in higher DA Hike announcement for Central Employees.

CPI for 2023 is given below for reference:-

Month CPI No Dearness Allowance
January 2023 132.8 43.08 percent
February 2023 132.7 43.79 percent
March 2023 133.3 44.46 percent
April 2023 134.2 45.06 percent
May 2023 134.7 45.58 percent
June 2023 136.4 46.24 percent
July 2023 139.7  ————-

 

DA Hike announcement for Central Employees
DA Hike announcement for Central Employees

Hike in Salary of employee

As per few media reports of a 4 per cent hike in DA, let us check the expected salary hike for central government employees.

  • Basic Salary of an employee                  – ₹ 50000 /-
  • Old Dearness Allowance (42%)              – ₹ 21000 /-
  • Revised Dearness Allowance (46%)       – ₹ 23000 /-
  • Increase in Monthly Salary                    – ₹ 2000 /-
  • Annual Increase in Salary                      – ₹ 24000 /-

Media news on DA hike

Bank Employees: Government Banks will have 5 Days Banking in a week, know the applicability date

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