Dearness Allowance: 16 percent increase in rate for these Central Government Employees

If you are central employee then this news is important for you. For those employees of Central Government and Central Autonomous Organizations who are getting salary as per 5th Pay Commission, the government has given a huge increase in Dearness Allowance.

There has been a bumper increase of 16% in DA of employees. The rate of DA for such employees was currently 396% of basic pay. After the change, DA is now 412 percent of basic pay.

The change made by the government will be effective from January 1, 2023. That means the employees will get six months of arrears along with the salary of the month of June.

The Department of Expenditure, Ministry of Finance informed that it has been decided to increase the rate of Dearness Allowance (DA) for employees of Central Government and Central Autonomous Bodies from the existing 396% to 412.

396 % as per 5th Central Pay Commission. Earlier in April 2023, the rate of DA was increased from 212% to 221% under the Sixth Pay Commission for the employees of Central and Central Autonomous Bodies.

At present, the central government is giving dearness allowance of 42 percent of the basic salary to the employees drawing salary under the 7th Pay Commission.

Under the 7th Pay Commission, the pay hike was earlier 4 percent, which has increased to 42 percent. This increase was implemented from January 1, 2023. Now the central government is going to announce the next Dearness Allowance in October in September.

A 4 percent increase in inflation allowance is expected this time as well. Therefore, an increase of up to 46 percent of the basic pay is expected.

The inflation allowance announced in October will be effective from July 1. Due to this, the employees will also get three to four months arrears.