Delhi, April 24: The Central Government employees recently got 4% hike in Dearness Allowance (DA) and Dearness Relief (DR). The revised DA/DR rate will be applicable from January 1, 2023. Meanwhile, the employees are looking forward to the next DA hike to be effective from July 2023 on the recommendations of 7th pay commission.

The Dearness Allowance rate is decided by the Government as per the All-India CPI-IW data released by the Labour Bureau under the Ministry of Labour and Employment. 7th Pay Commission: Centre To Revise Fitment Factor Rate in 2024? New Pay Commission Implementation Likely in 2026; Check Latest News Update.

According to latest reports and data from the All-India Consumer Price Index (AICPI) for the last four months, it is expected that the Union Cabinet could grant another 3 percent DA hike for July 2023 later in the year. There will be more clarity whether central employees will get a 3 or 4 percent hike after the upcoming AICPI figures, reported Financial Express.

Certain reports have stated that Centre may be considering a new formula for Dearness Allowance increase calculation. The government is planning to do away with the pay commission in the next few years and is set to introduce a new formula for calculation of salaries of central employees. 7th Pay Commission Likely to Be Last One, Government May Switch to New System to Fix Central Employees Salaries, Says Report.

The 4 per cent hike in DA and dearness relief (DR) will increase the salary of 47.58 lakh central government employees and pension amount for 69.76 lakh pensioners. The DA is given to employees based on the basic pay of the employees.

For example, if a government employee’s monthly take-home salary is about Rs 42,000 and the Basic Pay is around Rs 25,500; then he/ she must be getting Rs 9,690 as the dearness allowance. Now, this DA amount will increase to Rs 10,710 after the latest 4 per cent DA hike. So, there will be an increase of Rs 1,020 in monthly take-home salary in this case.

(The above story first appeared on LatestLY on Apr 24, 2023 01:49 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).