Waiting for Union Cabinet Committee Approval: 46% DA from July 2023 for CG Employees
The Central Government has announced an anticipated increase of 4% in Dearness Allowance (DA) for its employees, pensioners, and family pensioners, starting from July 2023. The approval for this enhancement is expected to be granted by the Union Cabinet Committee, which typically occurs in September. The announcement of a DA hike is eagerly awaited by all Central Government employees and pensioners.
The calculation of the DA percentage follows the methodology established by the 7th Pay Commission, which takes into account the average All India Consumer Price Index Numbers (AICPIN) for Industrial Workers over a 12-month period. Currently, the DA stands at 42% and will be raised to 46% from July 1, 2023.
The announcement regarding DA is made twice a year, usually in March and September. This allowance is provided to government employees and pensioners in India, with separate installments disbursed. The revised DA comes into effect in January and July of each year, aiming to mitigate the impact of increasing prices of essential goods and commodities.
The announcement of the additional 4% DA for the current year, effective from July 2023, will be made soon after the approval of the Union Cabinet Committee.
Starting from July 2023, Central Government Employees and Pensioners will receive a disbursement of 46% Dearness Allowance and Dearness Relief, which will be calculated based on their Basic Pay or Basic Pension.
For the month of July 2023, 42% of the DA has already been paid, and the remaining 4% will be disbursed as arrears. Similarly, for August 2023, 42% of the DA has already been paid, and the outstanding 4% will also be disbursed as arrears.
Moving forward to September 2023, the complete 46% DA will be provided to eligible recipients.