The news in the air for central Govt employees and pensioners is DA. There is lot of buzz going around as to what is the latest decision on DA. The long wait by central govt employees is over. So in this article, we are giving you latest updates covering full story on DA. DA for Central Govt Employees Increased latest Updates.
DA for Central Govt Employees latest Updates-Good News
Presently Central Govt employees are getting DA at the rate of 38%. DA is 38% with effect from 01 Jul 2022. It is noteworthy that Central Govt employees get DA twice a year i.e. on 01 Jan and 01 Jul every year.
History Post Corona: The Govt decided to increase DA by 4% from 01 Jan 2020 but the decision could not be executed as lock-down came in force on 23 Mar 2020. Consequently, DA came to on hold since then. DA was supposed to increase on 01 Jan 2020, 01 Jul 2020 and 01 Jan 2021. However, DA attracted no intention from Govt and hence no increase in DA.
If Govt had increased DA on an average 4% then by Jan 2021, it would have reached 29%. But due to Corona pandemic, the DA was still 17%. Central Govt employees and pensioners were dubious as when they will get DA effecting from 1 Jan 2020, arrears of DA, Flat DA ????
The case was invoked in parliament where then Minister of State for Finance, Anurag Thakur came with assurance that DA will be increased w.e.f 01 Jul 2021.
In developments that followed, Union Minister Anurag Thakur said on 14 Jul 2021 that the DA for central government employees and pensioners has been increased from 17% to 28%. All three installment together increased DA by 11%. No arrears for the period from 01 Jan 2020 to 30 Jun 2021 shall be paid.
The increase in DA from 01 Jul 2021 got effected from that day, which implied that the employees would not get any arrears on revision of DA for previous period.
There was another hike in the DA with effect from 01 Jul 2021. View inflammation rate on sky high, the rate of DA was hiked by another 3%. And the DA reached to 31% from 28%.
DA Rates with Fresh Announcements
In fresh announcements on 17 Mar 2023 by central govt of India, DA is hiked by another 4% and the fresh rates will be 42% on basic payment. The new DA rates will come in effect from 01 Jan 2023. The arrear from 01 Jan 2023 will be paid to central govt employees. The decision was taken by cabinet committee on economic affairs. The committee meeting was chaired by Prime Minister Narender Modi. CPI-W indicator calculated DA to 4.23% which is rounded off to 4%.
The decision from Govt will benefit about 50 Lakh central government employees and more than 65 Lakh pensioners. The hike is expected to cost the government approx. ₹9,544 crores per annum. Next DA hike now will be in the month of Jul 2023.
FAQs About DA
What is full form of DA? What is DA?
For central govt employees payment DA means Dearness Allownce. Dearness Allowance (DA) is a component of monthly salary which is given to employees to compensate for the increase in the cost of living due to inflation.
Who inscreses DA? Wheather Govt or Organisation?
Central govt increases DA rates for central govt employees. DA for state govt employees is increased by respective state govt.
How govt calculate hike in DA percentage?
When DA is to be hiked, govt takes Consumer Price Index (CPI) in consideration?
Does hike in DA apllies to serving employees only or is it applicable to pensioners also?
DA hikes are applicable to seving employees and pensioners as well as.
When govt takes decision to hike DA? On what occasion DA is hiked?
DA is hiked twice a year. 01 Jan and 01 Jul of every year.
What are present rates of DA?
As per last announcement on 17 Mar 2023, DA is 42% with effect from 01 Jan 2023.
When DA will increase now? When there will be next hike in DA?
DA will now be increased with effect from 01 Jul 2023. Announcement is made in the month of September.
DA is applicable on which payment?
DA is calculated on basic payment, Military Service pay (If applicable) and technical pay (if applicable).
Is DA calculated on Military Pay Service (MSP)?
Yes, DA is also calculated on Military Pay Service (MSP).
Is DA calculated on Technical Pay or X group pay?
Yes, DA is appliable on technical pay or X group pay.
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