DA alert: Centre declares Dearness Allowance for these employees

New rates of DA allowance for central government employees

For a basic pay of up to ₹3,500 per month, the DA rate will be 701.9% of pay subject to a minimum of ₹15,428. For basic pay between ₹3,501 and ₹6,500 per month, the DA rate will be 526.4% of pay subject to a minimum of ₹24,567. For a basic pay of over ₹6,500 and up to ₹9,500, the DA rate will be 421.1% of pay subject to a minimum of ₹34,216. All these rates are effective from 1 July 2023.

“The payment on account of dearness allowance involving fractions of 50 paise and above may be rounded off to the next higher rupee and the fractions of less than 50 paise may be ignored,” the department said.

“The quantum of IDA payable from 01.07.2023 at the old system of neutralization @Rs.2.00 per point shift for an increase of 96 points, maybe ₹192/- and at AICPI 8813, DA payable may be Rs. 16215.75 to the executives holding Board level post, below Board level post and non-unionized supervisors following IDA pattern in the CPSEs of 1987 pay scales,” the department added.

All administrative Ministries/Departments of the Government of India are requested to bring the foregoing to the notice of the CPSEs under their administrative control for necessary action at their end.

Dearness Allowance (DA)

DA means a cost-of-living adjustment that is offered to these employees. The government pays DA to help employees cope with stubbornly rising prices which is due to high inflation.

Dearness allowance calculation:

For central government employees: The DA is calculated as — {(Average of the All-India Consumer Price Index (Base year -2001 =100) for the last 12 months -115.76)/115.76} x 100.

For central public sector employees, the DA is calculated as — {(Average of the All-India Consumer Price Index (Base year -2001 =100) for the last 3 months -126.33)/126.33} x 100.

Updated: 13 Jul 2023, 09:54 AM IST