Central Employee DA Hike 2023: On the one hand, before the new year, the Tripura government has given a gift to its government employees and pensioners by increasing dearness allowance and dearness relief by 12 percent, on the other hand, there is a lot of speculation about DA increase in 2023 for central employees and pensioners. There is a possibility that after the continuous jump in the figures of AICPI index, the central government may once again increase the DA of the employees by 3 to 5 percent in 2023 and it can be announced in March 2023 around Holi. Although the official confirmation is yet to be done.
Actually, on the basis of AICPI index, the dearness allowance and dearness relief of central employees are revised twice a year by the central government in January and July. Speculation is rife, as the figures for July to September have come, although the numbers for October, November and December are yet to come, which will be released soon. So far, there has been a total increase of 2.1 percent in the AICPI index, in September this figure stood at 131.2. After this, the numbers of AICPI index will decide how much dearness allowance will increase in January 2023.
DA will be 42 or 43 percent
Presently central employees are getting the benefit of 38 per cent DA and it is expected that in the new year the DA of central employees-pensioners may be increased by 3 to 5 per cent, after which it may be 42 or 43 per cent. With the increase in DA by 4 per cent, employees getting a salary of Rs 18,000 will get an increase of Rs 720 per month and an annual salary of Rs 8,640. Similarly, employees getting salary of Rs 56900 can see an increase in DA by Rs 2276 per month and Rs 27312 per year. The same can also increase Dearness Relief (DR) for pensioners. It will benefit 48 lakh central government employees and 68 lakh pensioners.
Salary calculation will be like this
- The Ministry of Labor had changed the base year of DA Hike in 2016.
- According to the Ministry of Labour, the new series with base year 2016=100 in the 7th Pay Commission will replace the old series (WRI-Wage Rate Index) with base year 1963-65.
- Under the 7th Pay Commission, the amount is calculated by multiplying the current rate of dearness allowance with the basic pay. The current rate of percentage is 12%.
- If your basic pay is Rs.18000 DA (18000 x12)/100, DA percentage = Average of CPI of last 12 months – 115.76.
- Now whatever comes will be divided by 115.76, the number that will come will be multiplied by 100.
dearness allowance and tax
Dearness allowance is given to government employees for their living and food. This amount is available to government employees, public sector employees and pensioners. Dearness allowance is fully taxable, under income tax rules, separate information about dearness allowance has to be given in the income tax return. In this, you will have to pay tax on the amount you get in the name of Dearness Allowance (DA).