On February 1 at 11 a.m., the Modi government will present the Union Budget for the fiscal year 2023-2024. The center may announce a new pay commission in this budget prior to the budget.
Eight years after the implementation of the seventh pay commission, the government will either introduce the eighth pay commission or modify the seventh pay commission as it currently exists.
A significant announcement is expected prior to the Union Budget 2023 announcement on Wednesday, according to reports. According to various news websites, a new inflation figure will be released, determining how much central employees’ and pensioners’ salaries will rise in the first half of the year.
How does Dearness Allowance work?
The dearness allowance is a predetermined proportion of the basic salary. DA contributes to reducing inflation’s impact. Because DA is directly related to the cost of living, the DA component varies depending on where an employee works. This indicates that employees working in the rural, semi-urban, or urban sectors receive different DA.
The DA of central employees could rise by 3%, according to AICPI data through November 2022. If the DA index remains unchanged in December, the 3% salary increase for central employees is fixed. The dearness allowance, on the other hand, can increase by 4% if the index goes up by one point.
On March 1, 2023, a cabinet meeting is expected to make the final decision on an increased dearness allowance. Employees will see an increase in pay beginning on March 31 if the dearness allowance is raised. In addition, the funds for January and February will be deposited into the account along with the outstanding debt.
Dearness Benefit: When does DA go up?
After a six-month review, the dearness allowance is increased twice a year based on ACIPI figures. Before Holi, the increase in expense allowance will be announced.
The country’s nearly 47 lakh employees and 68 lakh pensioners will gain from the increase in the dearness allowance. At the beginning of the year, the government increased DA by 3%, and the dearness allowance then increased to 38%. The cost of living allowance will increase by 41% if it sees a 3 percent increase.
