An increase in the Dearness Allowance (DA) has been announced for the employees of the Public Enterprises Department under the CPSE of the Central Government. According to a circular issued by the department on July 7, 2023, this increase in the dearness allowance of the employees has been done on the basis of industrial dearness allowance on the 1992 pay scale.
Explain that the government pays DA to the employees to help them deal with the ever-increasing prices due to high inflation. The new rates of DA hike for employees of the Public Enterprises Department are effective from July 1, 2023.
These are the new revised rates of DA:
According to the new rates, dearness allowance will be 701.9 per cent i.e. Rs 15,428 for employees getting basic salary up to Rs 3,500 per month. On the other hand, for employees getting basic salary between Rs 3,501 to Rs 6,500 per month, the dearness allowance will be 526.4 per cent, which will be a minimum of Rs 24,567. For employees getting basic salary above Rs 6,500 and up to Rs 9,500, the dearness allowance rate will be 421.1 per cent of the salary, subject to a minimum of Rs 34,216.
New rates will be considered applicable from July 1.
After this increase, if the amount of DA goes above 50 paise, then it will be considered as Re 1 and if it is less then it will be considered as zero. We can understand this in this way that if DA is Rs 150.75 then it will be considered as Rs 151 and if it is Rs 150.45 then it will be considered as Rs 150 only. The new rates of DA for employees will be applicable from July 1, 2023 and under the old system Rs 2 will be considered for every point. DA of Rs 16215.75 will be given for the executive of AICPI.
How is dearness allowance calculated?
The calculation of dearness allowance for central government employees is done on the basis of multiplying the current rate of DA and basic salary. Its formula is {Average of last 12 months All India Consumer Price Index (Base Year-2001=100-115.76/115.76}X100. Similarly for Central Public Sector Employees, DA is calculated {(All India Consumer Price Index for last 3 months Average of India Consumer Price Index (Base year -2001 =100) is calculated as -126.33)/126.33} x 100.
