Delhi, February 28: In a good news for central government employees, the government is anticipated to raise the DA rate from the existing level of 38% to 42%. Pensioners should likewise expect a similar increase in the DR rate. These changes are likely to be implemented in the month of March before holi on 7th pay commission.

Dearness allowance (DA) and dearness relief (DR) are revised twice a year, on January 1 and July 1 of each year. The most recent increase, which benefited approximately 48 lakh central government employees and 68 lakh pensioners, increased the DA by 4 per cent to 38 per cent on 7th pay commission recommendations. 7th Pay Commission Good News: Centre Likely To Announce 8th Pay Commission Before Lok Sabha Elections 2024; Check Latest News Update Here.

The DA hike will raise the dearness portion of central government employee salaries. 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 Latest News Today: Centre Likely To Raise Fitment Factor to 3.68 Times After Holi 2023; Know How Much Salary Will Increase.

The DA and DR hike is decided based on the percentage increase in 12 monthly average of the All India Consumer Price Index (AICPI). Though the central government revises the allowances on January 1 and July 1 every year, the decision is generally announced in March and September on 7th pay commission recommendations.

(The above story first appeared on LatestLY on Feb 28, 2023 02:24 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).