7th Pay Commission: Last revision in DA was done on September 28, 2022, which was effective from July 1, 2022.
DA hike news: Central government employees were expecting a DA hike (dearness allowance) in the Union Budget 2023 which was presented on February 1. However, the Centre did not make any such announcement. But now, there is likely some good news for over one crore employees and pensioners.
The central government is likely to increase the dearness allowance by 4 percent to 42 per cent from the existing 38 percent. The hike is based on the latest Consumer Price Index for Industrial Workers (CPI-IW) released by the Labour Bureau every month under the Labour Ministry.
If approved by Union Cabinet, 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. The allowance is revised periodically twice a year, in January and July.
Talking to PTI, All India Railwaymen Federation, General Secretary, Shiva Gopal Mishra said, "The CPI-IW for December 2022 was released on January 31, 2023. The dearness allowance hike works out to be 4.23 per cent. But the government does not factor in hiking DA beyond decimal point. Thus DA is likely to be increased by four percentage points to 42 per cent."
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He further explained that the expenditure department of the Finance Ministry will formulate a proposal to hike DA along with its revenue implication and will put up the proposal before the Union Cabinet for approval.
DA hike calculation
It is worth noting that DA is different for employees depending upon the level of the pay matrix. If your pay matrix is high, then your DA will also be high.
Level 1 grade pay:
If any employee has a basic salary under level 1 of the 1800 grade pay scale, which is Rs 18,000 per month, then with DA at 42%, the dearness allowance would come at Rs 7,560 on the mentioned salary (42% of 18,000 pm).
At 38%, the dearness allowance comes around to Rs 6,840 (38% of Rs 18,000 pm). This would be an increase of Rs 720 in dearness allowance at 42%.
Level 9 grade pay:
For an employee having level 9 of 5400-grade pay, the basic salary is Rs 53,100 per month. At 42%, the dearness allowance would be Rs 22,302 on this basic salary, while at 38%, it would be Rs 20,178.
Hence, DA will rise by Rs 2,124 from January 1, 2023, compared to the dearness allowance received between July 1, 2022, to December 31, 2022.
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