The DA and DR rates of central employees and pensioners are revised by the Central Government twice a year in January and July, depending on the data of AICPI index released by the Labor Department. There has been an increase in January and now new rates are to be released for July.
Central Employee DA / DR / Salary Hike 2023: There is good news for 1 crore central employees and pensioners. By the end of September, a 4 percent increase in dearness allowance and dearness relief may be announced. According to latest media reports, the proposal to increase DA and DR may be approved in the Union Cabinet meeting to be held on September 27 after the G20 summit. After this, the DA of central employees will increase from 42 to 46 percent. Due to this, there will be a jump of up to 50000 in the salary of the employees. The allowances will also increase by 25 percent.
Actually, the DA and DR rates of central employees and pensioners are revised by the Central Government twice a year in January and July, depending on the data of AICPI index released by the Labor Department. There has been an increase in January and now new rates are to be released for July. For this, dearness allowance has been fixed on the numbers of AICPI index from January 2023 to June 2023. It is almost certain to increase dearness allowance ‘DA’ and dearness relief ‘DR’ by four per cent from July 1. However, its formal announcement has not been made yet. This time also the increase in dearness allowance and dearness relief will be done according to the formula of the Seventh Pay Commission.
DA increase proposal will come soon in cabinet
According to media reports, an important meeting of the Modi cabinet is to be held on September 27, in which the Expenditure Department of the Finance Department may propose a DA hike. Orders will be issued by the Finance Ministry after approval from here. Central employees can get the benefit of 46% DA from October. At present the employees are getting the benefit of 42% DA, if there is another 4% increase then DA will increase to 46%. If the new rates will be applicable from July, then arrears of 2 months will also be given. This will benefit 47.58 lakh employees and about 69.76 lakh pensioners. This will increase the salary of the employees from 27000 to 70000.
Increase in house rent allowance also possible
According to media reports, apart from the dearness allowance, the central government may also increase the HRA. The last HRA was increased by 25 percent in July 2021. This time it is possible to increase it by 3%. Since the HRA of a government employee is increased on the basis of the city, it is placed in X, Y, and Z categories. At present Z category employee gets 9% HRA, Y 18% and X 27% HRA on their basic salary. It is believed that 3% in X category cities and only 2% in Y category cities and 1 in Z category HRA can be increased up to %.
2.5 times increase in minimum basic pay may also be considered
Central employees can also get the gift of increase in fitment factor in the election year. Employees may see an increase of two and a half times in salary. Since the present fitment factor of the employees is 2.57% and they have been demanding for a long time to increase it to 3.00% or 3.68%, there is a possibility that the Modi government may consider the fitment factor of the employees keeping the upcoming Lok Sabha elections in mind. Can
Lok Sabha elections are to be held in 2024, so a consensus can be reached on implementing it from 2026. However, official confirmation has not been made yet. Earlier, the government had increased the fitment factor in 2016 and from the same year the 7th pay commission was also implemented and the minimum salary of the employees increased from Rs 6000 to Rs 18,000 and now if it increases then the basic salary will become Rs 26000.
In other words, if the rates of fitment factor are revised, the salary of the employees will increase by two and a half times. For example. If the basic salary of the employee is Rs 18,000, then excluding allowances his salary will be Rs 18,000 X 2.57 = Rs 46,260.
When it is 3.68, the salary will be Rs 95,680 (26000 With 3 times fitment factor, the salary will be Rs 21000 X 3 = Rs 63,000.
