Cabinet approves release of an additional installment of DA to Central Government employees
The Union Cabinet chaired by the Prime Minister, Narendra Modi, yesterday has given its approval to release an additional installment of Dearness Allowance to Central Governments employees and Dearness Relief to Pensioners with effect from 01.01.2023. The additional installment will represent an increase of 4% over the existing rate of 38% of the Basic Pay/Pension, to compensate against price rise.
The combine impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs.12,815.60 crore per annum.
This will benefit about 47.58 lakh Central Governments employees and 69.76 lakh pensioners.
This increase is in accordance with the accepted formular which is based on the recommendations of the 7th Central Pay Commission.
According to the government, the cabinet on Friday approved the release of additional installments of dearness allowance to central government employees and dearness relief to pensioners from January 1, 2023. This will benefit 47.58 lakh employees and 69.76 lakh pensioners. After this increase, DA has now increased to 42 per cent.
Increased dearness allowance will be applicable from this date
According to the figures of AICPI-IW, dearness allowance is given to the employees by adding or subtracting inflation. It is revised every six months. Now that the central government has announced a 4 percent increase in dearness allowance for January. In such a situation, this allowance will be implemented from January 1, 2023. In such a situation, the central employees will also get the outstanding arrears of two months. It is being said that this will also be paid along with the March salary.
How is DA determined?
Dearness Allowance (DA) is a part of salary. It is a fixed percentage of the basic salary of the employee. To reduce the effect of inflation, the government gives dearness allowance to its employees. It is extended from time to time. The government fixes dearness allowance by considering the inflation rate based on the All India Consumer Price Index as the base. Earlier, on 28 September 2022, the central government had increased the dearness allowance of the employees. Dearness Allowance is reviewed twice a year. This review takes place in January and July.
