DA Increase: The Central Government has given good news to the employees getting salary as per the pre-revised pay scale of the 6th and 5th Pay Commission. Dearness Allowance of these employees working in Central Public Sector Enterprises (CPSE) has been increased.
The increased DA will be considered effective from July 1, 2023. These employees had been waiting for the government’s announcement for a long time. Because, many states including the Center had increased the dearness allowance of other employees even before Diwali. Let us understand how much this decision will benefit the employees.
DA will be 230 percent of basic pay
The Department of Public Enterprises of the Finance Ministry had taken the decision to increase dearness allowance on 16 November. According to the order, employees getting salary according to the grade pay of the 6th Pay Commission will be benefited from this. His DA will be 230 percent of the basic pay. Till now he was getting 221 percent dearness allowance. This decision will be applicable to those employees whose salaries were revised with effect from January 1, 2006 under an order issued on October 14, 2008.
how much will be the benefit
Dearness allowance is calculated on the basis of the basic pay of the employee. With this, the salary of an employee with a basic pay of Rs 40 thousand will increase by approximately Rs 7000. Employees receiving pension will also benefit from this decision.
DA of 7th Pay Commission employees was increased by 4 percent
Before Diwali, the central government had announced a 4 percent increase in DA for employees and pensioners. His DA was increased from 42 percent to 46 percent. After this, DA was increased in many states and union territories also. However, the employees taking salary and pension as per the 6th and 5th Pay Commission were still disappointed.
Why does DA increase?
The increase in DA is done to reduce the effect of inflation. The central government revises dearness allowance twice a year in January and July. DA is calculated on the basis of where the employee is posted. In this it is seen whether he is posted in a big city, small town or rural area. On that basis dearness allowance may be more or less.
