DA is for employees and DR is for pensioners. Every year, DA and DR are increased twice usually in January and July. The last increase was in October 2023, when DA was increased by 4 percent to 46 percent. Based on current inflation figures, the next DA increase is likely to be 4 percent.
The government can give a big gift to lakhs of central government employees of the country before Holi. The central government is planning to increase the dearness allowance of central government employees before Holi. This increase could be an increase of 4 percent.
After this increase, dearness allowance and dearness relief (DR) will increase by more than 50 percent. Dearness allowance for central government industrial workers is decided on the basis of CPI data. Currently the 12-month average of CPI data is at 392.83. Based on this, DA will be 50.26 percent of the basic salary. The Labor Bureau Department of the Ministry of Labor publishes CPI-IW data every month.
It is noteworthy that DA is for employees and DR is for pensioners. Every year, DA and DR are increased twice usually in January and July. The last increase was in October 2023, when DA was increased by 4 percent to 46 percent. Based on current inflation figures, the next DA increase is likely to be 4 percent. If an increase in DA is announced in the month of March, then it will be implemented from January. Therefore, employees and pensioners will also get the dues of the previous months.
This is how DA and DR are calculated
7th CPC DA% = [{12 month average of AICPI-IW (base year 2001=100) for last 12 months – 261.42}/261.42×100]. The point to be noted here is that this calculation formula is applicable to those central government employees and pensioners who get salary based on the recommendations of the 7th Pay Commission.
How much will the salary increase?
If there is an increase of 4 percent in dearness allowance and dearness relief, then how much will be the increase in the salary of employees and pensioners, let us try to understand it with an example…
If the basic salary of a central employee is Rs 53,500 per month. In such a situation, according to 46 percent, the current dearness allowance will be Rs 24,610. Now, if DA increases to 50 percent then this amount will increase to Rs 26,750. This means that the employee’s salary will increase by Rs 26,750 24,610 = Rs 2,140 per month.
Central government pensioners get a basic pension of Rs 41,100 per month. Those receiving pension at 46 percent DR get Rs 18,906. If their DR becomes 50 percent, they will get Rs 20,550 every month as relief from inflation. In such a situation, if DA is increased by 4 percent soon, then their pension will increase by Rs 1,644 per month.
