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Central Govt Likely to Announce 4% Dearness Allowance Tomorrow!

Last Updated on March 2, 2023

Additional 4% DA for Central Govt Employees With Effective January 2023

Greetings! We are pleased to announce that beginning in January 2023, Government employees will receive a Dearness Allowance (DA) of 42%. DA is an essential part of the salary structure and is often used as an incentive for employees. It helps to offset rising costs of living, enabling them to stay current with inflation and other economic changes. The quantity of DA paid is determined by the salary structure and the rate of inflation, and is adjusted regularly to keep up with these changes. DA is calculated as a percentage of an employee’s basic salary.

42% Dearness Allowance is Confirmed!

It looks like we’re nearly there – it’s nearly confirmed that from January 2023, we’ll be seeing a 42% Dearness Allowance (DA) increase for Central Government Employees and Pensioners! According to the Labor Bureau press release, the All-India Consumer Price Index for Industrial Workers (CPI-IW) is staying the same this November 2022. This month’s CPI-IW data has seen a 4% increase, as per the Seventh Central Pay Commission. The only thing that could change this ‘Expected DA from January 2023’ prediction is if the AICPIN index for December 2022 changes by more than 7 points or decreases by more than 5 points. Otherwise, it looks like the 42% DA is almost certain!

DA January to June 2023 Table

M/Y AICPIN 2016 AICPIN 2001 DA%
Jul 2022 129.9 374 39.04
Aug 2022 130.2 375 39.71
Sep 2022 131.3 378 40.43
Oct 2022 132.5 382 41.13
Nov 2022 132.5 382 41.77
Dec 2022 132.5 382 42.44

If the AICPIN index for December is 132.5, Central Government employees, pensioners, and their family pensioners will receive an additional 4% DA/DR, bringing the total DA/DR to 42%!

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