Union Cabinet May Approve 4% Increase in Dearness Allowance from July 2023

4% Additional DA Increase from July 2023 for Central Govt Employees, Pensioners, and Family Pensioners!

Approval of Cabinet Committee on July 2023 DA: It is expected that the Union Cabinet Committee will approve a 4% increase in the Dearness Allowance (DA) starting from July 2023. Normally, this approval is granted by the Cabinet Committee of Economic Affairs in September. There is great anticipation among all Central Government employees and pensioners for the announcement of an increase in DA from July 2023.

As per the prescribed calculation methodology provided by the 7th Pay Commission, the Dearness Allowance (DA) percentage is determined by taking into account the average All India Consumer Price Index Numbers (AICPIN) for Industrial Workers over a period of 12 months. Currently, the DA stands at 42% and will be increased to 46% starting from July 1, 2023.

The Dearness Allowance (DA) is customarily announced twice a year, specifically in March and September. This stipend is bestowed upon government employees and pensioners in India, with disbursements made in two distinct installments. The revised DA will be implemented in January and July of each calendar year. The purpose of these two increments in the DA is to alleviate the consequences of escalating prices of vital goods and commodities.

The Union Cabinet Committee’s approval is imminent for the announcement of the upcoming installment of a 4% additional Dearness Allowance (DA) for the current year. This increase, effective from July 2023, will soon be declared.

42% + 4% = 46%

DA Arrears for July and August 2023

Starting in July 2023, Central Government Employees and Pensioners will be granted a disbursement of 46% Dearness Allowance and Dearness Relief. This disbursement will be calculated based on their Basic Pay or Basic Pension.

For the month of July 2023, 42% of the DA has already been distributed, while the remaining 4% of the DA will be paid as arrears.

Similarly, for the month of August 2023, 42% of the DA has already been disbursed, and the outstanding 4% of the DA will also be given as arrears.

Looking ahead to September 2023, the full 46% DA will be provided to those eligible to receive it.

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