Central Government Employees DA News
The Centre has approved a 4% increase in dearness allowance (DA) for central government employees and retirees, providing much-needed comfort in the wake of the nation’s multi-year high inflation rate. With this 4% increase starting on July 1, the DA for central government employees is now at 38%.
A change in DA results in an increase in pay for government employees and pensioners. This decision will benefit roughly 68.62 lakh retirees and about 47.68 lakh central government employees. What will a central government employee’s actual compensation increase be as a result of this hike?
A proportion of a government employee’s base pay is used to determine their DA. DA stands for a cost-of-living adjustment for employees, which the government occasionally takes into consideration. They receive DA to assist them in adjusting to the rising cost of goods and services. Retail inflation in India is currently at a multi-year high of roughly 7%.
Calculating DA:
Assume that the monthly base pay for a junior-level employee of the central government is Rs 20,000. The employee used to receive Rs 6,800 per month in DA at a rate of 34%. However, the same government employee will now receive a DA of Rs 7,600 per month after the current increase to 38 percent. Therefore, the difference in DA is Rs 800 per month.
The increase in dearness allowance will also be based on the baseline pension amount for government pensioners. Your Pension Payment Order (PPO) will include the basic pension amount.
Every year, on January 1 and July 1, the government reviews and adjusts/increases the proportion of the dearness allowance. On January 1, 2023, there will be another DA/DR hike.
Depending on whether a person works in the urban, semi-urban, or rural sectors, their DA differs from job to job as well. It should be remembered that the DA increases as an employee’s pay matrix level does.
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