7th Pay Commission Dearness Allowance (DA) Hike date 2023: The first dearness allowance hike of 2023 for Central Government Employees is expected to be announced soon. Several media reports have claimed that the Central Government may announce its decision to hike the DA rate after Holi, which is on March 8. However, there is no official confirmation on the exact date of the DA hike announcement. Therefore, Central Government Employees should wait till the official order of the Union Cabinet is out.
Along with DA for Central Government Employees, the rate of Dearness Relief for the Central Government is also due for revision. Clarity on the new rates on which employees and pensioners will get their DA and DR is yet to come.
DA hike date 2023
There is no official confirmation on the date of the DA/DR hike announcement However, if some media reports are to be believed, the announcements may happen after the Holi celebrations.
How much DA hike is expected
It is expected that the Union Cabinet will approve a 4% hike in DA and DR rates for employees and pensioners respectively. If this happens then the new DA rate for Central Government Employees will increase to 42%.
What was the last DA hike?
The Ministry of Finance announced the last DA hike through a notification dated October 3, 2022. The Dearness Allowance payable to Central Government Employees was then increased from 34% to 38% of the Basic pay with effect from 1st July 2022. The rate of dearness relief was also increased from 34% to 38% for Central Government Pensioners.
The Basic Salary considered for DA calculation is based on the 7th Pay Commission’s recommendations.
It is to be noted that the Central Government provides DA/DR to employees and pensioners in order to compensate for the erosion in the value of their salary/pension income due to inflation.