Published by: Vivek Dubey
The 4% hike takes the DA to 46% from 42%.
The increase in dearness allowance is poised to take effect from July 1, 2023, with the DA rate being determined by the All India Consumer Price Index (AICPI) from January to June.
Employees with a basic salary of Rs 18,000 can anticipate an annual salary increase of Rs 8,640.
Those with a basic salary of Rs 56,900 can expect an annual salary increase of Rs 27,312.
Dearness Allowance (DA) is a cost-of-living adjustment allowance provided by the government to public sector employees and pensioners.
Dearness Relief (DR) is similar in nature and benefits central government pensioners.
The government routinely revises the DA/DR rate every six months to counteract the diminishing purchasing power of monthly salary and pension wealth caused by inflation.
DA is calculated as a percentage of the basic salary. The formula for central government employees is as follows:
Dearness Allowance percent = ((Average of AICPI (Base Year 2001=100) for the past 12 months - 115.76) / 115.76) * 100