Delhi, February 11: Central government employees are eagerly awaiting confirmation regarding the next round of Dearness Allowance (DA) hike. Media reports have stated that the Centre will announce a 4 percent DA hike on 7th pay commission recommendations in March. The same, if done, will be effective from January 1, 2023.

The calculation of the DA hike is done on the basis of the latest Consumer Price Index for Industrial Workers (CPI-IW), which is prepared by the Labour Ministry’s Labour Bureau every month. The DA/DR hike is usually announced in the months of March and September on basis of 7th pay commission. 7th Pay Commission: Government to Take Decision on Pending DA Arrears After Holi 2023? Check Latest News Update Here.

DA is currently 38 percent of basic. If this goes up by 4 percent, then the DA payable will become 42 percent of basic salary. Assuming a basic salary of Rs 18,000, under level 1 of 1800 grade pay scale, the DA will come to Rs 7,560. This will be an additional Rs 720 in hand per month. Notably, at 38 percent, the dearness allowance comes around to Rs 6,840. 7th Pay Commission: Centre To Hike Fitment Factor, Minimum Salary of Central Government Employees After Holi 2023? Check Latest Updates Here.

As per reports, the likely 4% hike will be announced around Holi in March. The hike will be effective for central government employees from January 1, 2023.

Earlier DA was hiked on September 28, 2022, which was effective from July 1, 2022. The Centre had increased DA by four percentage points to 38 percent on 7th pay commission recommendations.

(The above story first appeared on LatestLY on Feb 11, 2023 12:45 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).