The Central government employees are currently getting DA at 42 per cent, and there’s speculation about a 3 per cent increase. If it is hiked, the DA will increase to 45 per cent,
![It is expected that the Centre could hike DA by 3% this time.](https://static.india.com/wp-content/uploads/2023/08/7th-Pay-Commission.jpg)
New Delhi: The government employees this year might get the Diwali gift from the Centre early as they are waiting for the DA hike announcement. Even as the exact date of DA hike is not yet announced, it is expected that the DA hike will be announced before Diwali.
At present, the Central employees are receiving DA at 42 per cent, and there’s speculation about a 3 percent increase. If it is hiked, the DA will increase to 45 percent, resulting in a significant salary hike of the employees.
It should be noted that the Centre revises DA twice a year. The first DA hike was made on March 24, 2023, and it became effective from January 1, 2023, and it was hiked from 38 to 42 percent. This time, the Central government employees are requesting for a 4 percent increase, but reports suggest the government may give 3 percent hike, effective from July 1, 2023.
How Is DA Hike DA Determined?
The DA hikes are generally determined based on inflation rates, with higher inflation leading to greater expectations for employee DA increases. The DA for central employees is revised based on the Consumer Price Index for Industrial Workers (CPI-IW) data. The CPI-IW index in July increased by 3.3 points to 139.7, marking a 0.90 percent rise from the same period the previous year. Interestingly, there is a set formula to calculate the dearness allowance of central government employees and pensioners.
If the Centre hikes DA during Diwali, it will benefit over one crore employees and pensioners, including 47.58 lakh central employees and approximately 69.76 lakh pensioners.
How Much Salary Will Increase?
If the DA is hiked by 3%, it will lead to a total 45% DA hike. If an employee gets a basic pay of Rs 18,000 and currently receives a 42 percent DA, it amounts to Rs 7,560. With the increase of DA, it would become Rs 8,100, resulting in a direct salary increase of Rs 540. Because an employee with a maximum basic pay of Rs 56,900, the current DA is Rs 23,898, while it would rise to Rs 25,605 with a 3 percent increase.
Moreover, if the central government releases DA with October salary, then it will be calculated from April. So, he will get an arrear for July, August, September.
When To Expect Next DA Hike From Centre?
The Central government is likely to announce the DA hike anytime soon. Media reports suggest that the DA hike could be announced before Diwali. Some other reports suggested that the Centre may announce the new DA/DR hike by this month’s end or in early October. However, there is no official confirmation on the same.