Centre may hike DA by 4% for central government employees and pensioners.

The Union Government is likely to soon hike the dearness allowance (DA) and dearness relief (DR) under 7th Pay Commission for its employees and pensioners by 4% to 42 % from the existing 38%.

However, no official notice has been released by the government.

So with a hike by 4%, suppose the basic salary of central employees is Rs 25,500 per month.

Currently, the DA of employees is Rs 9,690 at 38% but it the government approves 4% DA hike, the dearness allowance will increase to 10,710.

After the latest hike, the employees monthly salary will hike by Rs 10,710 - Rs 9,690 = Rs 1,020.

Similarly, suppose a retired employee gets a basic pension of Rs 35,400 per month. At 38 % dearness relief, the pensioner gets Rs 13,452. However, with 42 % DR, he will receive Rs 14,868 every month. So, his pension will rise by (Rs 14,868-Rs 13,452) i.e, Rs 1,416 per month.

The dearness allowance is usually increased periodically i.e., it is revised twice every year- January and February intended to make up for the increase of living expenses brought on by inflation.

Usually the hike and the payout is done in March, so for this year, employees could receive their revised salary from March 31, 2023.

According to a report by PTI, the arrears for the months of January and February will also be added to the final amount.

Last year, the centre was hiked in March and then later in September. It was hiked by 4% to 38% from the existing 34%.

This is not the first time reports are circulating that a DA hike announcement will be made soon. Earlier, it was said that the DA hike will be announced soon after Holi (March 8), however, that didn’t happen.

(Source- Economic Times)