In a move that could bring much-awaited relief to central government employees and pensioners, the Modi government is reportedly considering a significant increase in Dearness Allowance (DA) and Dearness Relief (DR) by up to 4 percent.
If implemented, this would raise the DA for employees from the existing 42 percent to 46 percent, resulting in a minimum salary increase of Rs 2000 for each employee.
With over 1 crore employees and pensioners across the country set to benefit from this decision, it holds the potential to improve their financial well-being.
AICPI June Figures to Determine Central Employees’ DA Increase; Announcement Expected Soon
The much-anticipated increase in Dearness Allowance (DA) for central government employees and pensioners may soon become a reality.
The final decision on the DA hike depends on the All India Consumer Price Index (AICPI) figures, with the data for June 2023 scheduled for release on July 31.
Speculations suggest that the DA might witness a rise of 4 percent, bringing it to 46 percent.
The government is expected to announce this increment in October-November, with the new rates deemed applicable from July 1, 2023.
Maximum Salary Can Increase: Calculating the Impact of 4% DA Hike
In the event of a 4 percent increase in Dearness Allowance (DA) for central government employees, maximum salaries are poised to experience significant growth.
A detailed analysis reveals that a government employee with a basic salary of Rs 18,000 could witness a rise of Rs 720 per month, taking the new monthly DA to Rs 8280.
Likewise, an employee earning Rs 56,900 might enjoy a monthly benefit of Rs 2,276 and an annual increment of Rs 27,312.
Rumors are rife that the government may not limit its generosity to just the Dearness Allowance (DA) hike, but also consider an increase in House Rent Allowance (HRA).
If the speculations hold true, HRA might witness a 3 percent hike in X class cities, 2 percent in Y class cities, and 1 percent in Z class cities.
The categorization of cities into X, Y, and Z classes determines the level of HRA, making it an eagerly awaited announcement for many central government employees.
