DA Hike Central Government Employees: 38% to 42 Expected to increase DA this March



What is DA and Why is it Important?

Dearness Allowance (DA) is extra money given to employees to help them cope with the rising prices of goods and services. It helps them manage their daily expenses. The government was supposed to announce a 4% increase in January 2023, but it got delayed. Now, there’s news that a significant announcement might come after Holi 2023.


Central Government’s Plan for DA and Fitment Factor

The Central Government is looking to make changes in both DA and fitment factor after March 8, 2023. Currently, the common fitment factor is at 2.57%. This means if an employee earns Rs. 15,500 with a 4200 Grade Pay, their total pay would be Rs. 39,835 (Rs. 15,500 x 2.57) under the 6th CPC.


Relief for Employees with Increased DA

The expected increase in DA will bring relief to employees who’ve been struggling with the high cost of living for a long time. The announcement is confirmed to come after Holi 2023, but the exact date of application is still pending. The increased DA will be applicable to all eligible employees and pensioners.


Central Government Employees’ Long-standing Demand

Central Government Employees have been demanding a higher DA hike for a considerable period. The 7th CPC advised a 2.57% fitment ratio, while the 6th CPC suggested 1.86%. Employees are now pushing for a fitment factor of 3.68, which could raise the minimum pay from Rs 18,000 to Rs 26,000 per month.


 Expected Hike from 38% to 42% in March

As per current reports, the government is likely to increase DA from the existing 38% to 42% this March. This increment is expected to be effective from January 2023. Additionally, there’s anticipation for an increase in Dearness Relief (DR) for pensioners. Stay tuned for more updates on this developing news.