The last revision in DA was done in March raising it by 4 per cent, which became effective from January 1, 2023. After the 4 per cent hike, the DA of central government employees increased to 42 per cent. Before this, the DA was hiked in September 2022 by 4 per cent, which became effective from July 2022.
Now, for the 7th Pay Commission employees, the DA is expected to hike by another 3-4 per cent, to be effective from July, according to the reports. Currently, as per the latest data, there are 47.58 lakh central government employees and 69.76 lakh pensioners.
Dearness allowance (DA) is given to government employees, while dearness relief (DR) is for pensioners. The DA is given to employees based on the basic pay of the employees, while the DR is given on the basis of a basic pension.
How DA Hike Is Calculated?
The central government revises the DA and DR for employees based on a formula. Following is the formula:
Dearness Allowance Percentage = ((Average of All-India Consumer Price Index (Base Year 2001=100) for the past 12 months -115.76)/115.76)x100.
For Central public sector employees: Dearness Allowance Percentage = ((Average of All-India Consumer Price Index (Base Year 2001=100) for the past 3 months -126.33)/126.33)x100.
