The current dearness allowance (DA) or dearness relief (DR) rate for central government employees and pensioners, respectively, is 42 per cent. In all possibility, the DA & DR rate is likely to increase by 3 percentage points to 45 per cent.
The government revises the DA and DR rate for central employees and pensioners twice a year – one in January and the second one in July. If implemented, the current increase in DA & DR will be effective from July 1, 2023.
In March 2023, the DA rate was increased from 38 per cent to 42 per cent.
This increase adheres to the 7th Pay Commission’s formula and is determined by the AICPI (All India Consumer Price Index) data. However, the final decision will be taken by the central government.
The Dearness Allowance (DA) and Dearness Relief (DR) is paid to government employees, and retired government employees, respectively, to mitigate the impact of inflation.
If the DA rate is increased to 45 per cent, a central government employee with a basic monthly salary of Rs 25000 will get Rs 11250 as DA. In the previous calculation, the employee would have got Rs 10500 as DA. So, with a 4 per cent DA hike, the central government will get an increment of Rs 750 per month.
The current increase in DA & DR will benefit 47.58 lakh employees and 69.76 lakh pensioners.
