42% Dearness Allowance from 01/01/2023

 42% Dearness Allowance for Central Govt Employees from 1st Jan 2023

42% Dearness Allowance for Central Govt Employees from 1st Jan 2023

DA for January 2023 is Concluded! 4% Additional DA Hike! 42% DA from January 2023 for CG Employees

 The Union Cabinet Committee is expected to make a decision on the proposed 4% increase in Dearness Allowance for Central Government employees, pensioners, and family pensioners, to be effective starting 1 January 2023.

42 percent Dearness Allowance for Central Government Employees with effect from 1.1.2023 and 42% Dearness Relief for Central Government Pensioners and Family Pensioners with effect from 1.1.2023.

The calculations for Dearness Allowance for the month of January 2023 have concluded. The sixth and last calculation of Dearness Allowance since issuing the AIPCIN for December 2022 is done. Central Government employees, pensioners, and family pensioners are now receiving 38% of their basic salary/pension as DA and DR every month. Following the Union Cabinet’s approval to increase DA from January 2023, orders will be issued from the Finance Ministry for payment of the revised DA/DR!

4% Additional Dearness Allowance from 1.1.2023

The Consumer Price Index (IW-BY 2016=100) from July-December 2022 showed a 4% rise in Dearness Allowance, pushing the total to 42%.

Month/Year      DA% DA%

January 2023      38%  

February 2023     38%  

March 2023           42%

April 2023             42%

May 2023               42%

June 2023              42%

How to calculate 42% DA on Basic Salary?

If the starting basic salary of a Central Government employee is Rs. 49000, then the calculation for Dearness Allowance (DA) will be as follows:

Month/Year     DA 38% DA 42% DA Arrears

January 2023         Rs. 1862  

February 2023       Rs. 1862  

March 2023            Rs. 2058 Rs. 392

DA Arrears 2023 for CG employees

Usually, Dearness Allowance hikes are declared in March and September, taking effect from the following January and July, respectively. Accordingly, Dearness Allowance for the first two months of each period will be provided as arrears. On 1 January 2023, a further 4% increase in the Dearness Allowance rate will be applicable to all Central Government employees, pensioners, and those receiving family pensions. Existing CG employees will be provided with a 42% Dearness Allowance by March 2023, and arrears for the months of January and February 2023 will be paid out then as well. The Dearness Allowance or Dearness Relief will be calculated using the existing and retired employees’ respective basic pay or basic pension.

7th CPC DA Chart 2023

The Dearness Allowance is a major element of income for state employees and pensioners in India. The chart below shows how the allowance rate has risen from 0% to 42% between 2016 and 2023.

DA Effective From DA Rate 2016 to 2023

January 2023 42% (Expected)

July 2022         38%

January 2022   34%

July 2021          31%

July 2021          28%

January 2021   17% (28%)

July 2020          17% (24%)

January 2020   17% (21%)

July 2019          17%

January 2019     12%

July 2018           9%

January 2018    7%

July 2017          5%

January 2017   4%

July 2016          2%

January 2016v   0

DA Calculator on Basic Salary

The Dearness Allowance (DA) percentage is consistent across all categories of Government workers, yet the actual amount differs from one person to another. This is based on the basic salary of each individual. A simple online tool is available for calculating the exact DA for all Central Government employees. All you need to do is choose the pay matrix level and basic pay, and press the Calculate button.

 The calculator will then provide an accurate answer. Click to Calculate Your DA

How much increase in DA for Central Government employees from 1.1.2023

All Central government employees, pensioners, and family pensioners can look forward to an increase in their Dearness Allowance from 1st January 2023! The amount of the increase will be based on basic pay or basic pension, but it is expected to be around 4 percent.