Holi is about to come and the government has announced that the DA of the employees will be increased on Holi and from now onwards the employees will get 42 percent DA, hearing which the employees are happy. Which employees will get its benefit, let us know
Central government employees were expecting DA hike ( 7th Pay Commission ) in the Union Budget 2023 presented on 1st February . However, the Center did not make any such announcement. But now it is expected that good news may come soon for more than one crore employees and pensioners.
The Central Government is likely to increase the Dearness Allowance by 4 percent from the current 38 percent to 42 percent. The hike is based on the latest Consumer Price Index for Industrial Workers (CPI-IW) released every month by the Labor Bureau under the Ministry of Labour.
If the Union Cabinet approves 4% DA in the 7th Pay Commission, then the DA hike will be effective from January 1, 2023. The last revision in DA was done on September 28, 2022, and was effective from July 1, 2022. DA is revised twice a year i.e. in January and July.
Speaking to PTI, Shiv Gopal Mishra, general secretary of the All India Railwaymen’s Federation, said, “The CPI-IW for December 2022 was released on January 31, 2023. There has been an increase of 4.23 per cent in the dearness allowance.” Thus DA is likely to be increased by four percentage points to 42 per cent.”
He further informed that the Department of Expenditure of the Finance Ministry will prepare a proposal to increase DA with its revenue implications and place the proposal before the Union Cabinet for approval.
DA hike calculation
Note that DA is different for employees depending on the level in the pay matrix. If your pay matrix is high then your DA will also be high.
Level 1 Grade Pay
If the basic pay of an employee under Level 1 of 1800 grade pay scale is Rs.18,000 per month, then with 42% DA, the DA will be Rs.7,560 on the mentioned pay. At 38%, the dearness allowance comes to around Rs.6,840. This will be an increase of Rs 720 in dearness allowance at the rate of 42%.
Level 9 grade pay
For an employee in Level 9 of 5400-Grade Pay, the basic pay is Rs 53,100 per month. On this basic pay, dearness allowance at 42 per cent will be Rs 22,302 while at 38 per cent it will be Rs 20,178. Therefore, there will be an increase of Rs 2,124 in DA from January 1, 2023 as compared to the dearness allowance received between July 1, 2022 and December 31, 2022.