The DA (Dearness Allowance) Hike for all Central government employers and retirees is anticipated to be announced by the Modi administration soon. The administration is considering making the increase in DA public by the end of this month, the sources claim. According to news reports, the DA increase, which will take effect on July 1, 2023, is predicted to be 3%. The dearness allowance will rise to 45% after the hike.

The projected salary growth:- The salaries of Central government personnel would undoubtedly increase if media stories are to be accepted and a 3% DSA boost is announced. Suppose one person receives a salary of Rs 50,000 per month, with Rs 15,000 serving as basic pay. He or she will now receive Rs 6,300, or 42% of the base salary. However, following the anticipated 3% raise, the employee would receive Rs 6,750 per month, or Rs 450 more. As a result, if an employee receives a monthly salary of Rs 50,000 and a base pay of Rs 15,000, his or her compensation will increase by Rs 450 per month.

Determination of DA hike:- For employees and retirees, the increase in dearness allowance and dearness relief are calculated using the most recent Consumer Price Index for Industrial Workers (CPI-IW), which is released each month by the Labour Bureau. Notably, the Labour Ministry’s Labor Bureau is a division of it.

The All-India CPI-IW for July 2023 increased 3.3 points to 139.7, according to the most recent data that was issued in July 2023. Compared to the gain of 0.90% between the same months a year earlier, the index climbed by 2.42% over the previous month on a percentage basis.

The Federation is asking for a four percentage point increase in the dearness allowance. However, the increase in the dearness allowance amounts to slightly more than three percentage points. DA is probably going to go up three percentage points to 45%.

The formula used by the central government to determine the DA and DR for central government employees and pensioners was changed in 2006.

Dearness Allowance Percentage is equal to ((Average of All-India Consumer Price Index for the last 12 months (Base Year 2001=100))/115.76×100.

Employees in the Central Public Sector: Dearness Allowance Percentage is calculated as follows: ((Average of All-India Consumer Price Index (Base Year 2001=100) for the previous three months -126.33)/126.33)x100.