Approval from the Union Cabinet Committee is currently pending for the implementation of a 46% Dearness Allowance (DA) from July 2023
An increase of 4% in Dearness Allowance (DA) for Central Government Employees, Pensioners, and Family Pensioners is expected to be approved by the Union Cabinet Committee in July 2023. Typically, this approval is granted by the Cabinet Committee of Economic Affairs in September. Central Government employees and pensioners are eagerly awaiting the announcement of the DA hike from July 2023.
The calculation of Dearness Allowance (DA) follows the methodology established by the 7th Pay Commission, which takes into account the average All India Consumer Price Index Numbers (AICPIN) for Industrial Workers over a period of 12 months. Currently, the DA stands at 42% and will be increased to 46% starting from July 1, 2023.
The announcement of Dearness Allowance (DA) is made twice a year, in March and September. This allowance is provided to government employees and pensioners in India, with separate installments given. The revised DA will be effective from January and July of each year, aiming to mitigate the impact of rising prices of essential goods and commodities.
The announcement of the additional 4% Dearness Allowance (DA) for the current year, starting from July 2023, will be made soon after the approval of the Union Cabinet Committee. The total DA for July and August 2023 will be 46%. For July, 42% of the DA has already been paid, with the remaining 4% to be paid as arrears. Similarly, for August 2023, 42% of the DA has already been disbursed, and the outstanding 4% will be provided as arrears. From September 2023 onwards, eligible recipients will receive the full 46% DA.