DA Hike news: In the Union Budget 2023, which was presented on February 1, central government employees anticipated a DA (dearness allowance) increase. But the Center didn’t say anything like that. However, over one crore pensioners and employees may now have some good news.
The dearness allowance is likely to be increased by 4%, from the current 38%, by the central government. The most recent Consumer Price Index for Industrial Workers (CPI-IW), which is published monthly by the Labour Bureau, a division of the Labour Ministry, serves as the basis for the increase.
The DA increase will take effect on January 1, 2023, if the Union Cabinet approves it. The most recent DA revision was made on September 28, 2022, and it went into effect on July 1, 2022. In January and July of each year, the allowance is evaluated on an ongoing basis.
“The CPI-IW for December 2022 was released on January 31, 2023,” All India Railwaymen Federation General Secretary Shiva Gopal Mishra stated in an interview with PTI. The increase in the cost of living allowance amounts to 4.23 percent. However, the government does not take into account DA increases beyond the decimal point. As a result, DA is likely to rise by four percentage points to 42%.”
He went on to explain that the Finance Ministry’s expenditure department would come up with a plan to raise the DA and calculate the impact on revenue, then present the plan to the Union Cabinet for approval.
DA hike calculation
It is important to note that DA varies for employees based on the pay matrix level. Your DA will also be high if your pay matrix is high.
Grade pay at level one:
With DA at 42%, the dearness allowance would be Rs 7,560 on any employee’s basic salary of Rs 18,000 per month (42 percent of 18,000 pm) in level 1 of the 1800 grade pay scale.
The cost allowance, at 38%, amounts to approximately Rs 6,840 (38% of Rs 18,000 pm). The dearness allowance would thus rise by Rs 720, or 42%.
Pay at grade level 9:
The monthly basic salary for an employee with level 9 pay of 5400 is Rs 53,100. On this basic salary, the dearness allowance would be Rs 22,302 at 42% and Rs 20,178 at 38%.
As a result, the dearness allowance received between July 1, 2022, and December 31, 2022 will increase by Rs 2,124 starting January 1, 2023.
