46% Dearness Allowance from July 2023 - Waiting for Union Cabinet Committee Approval!


4% Additional Dearness Allowance Increase from July 2023 for Central Government Employees, Pensioners, and Family Pensioners!

The Union Cabinet Committee is expected to grant its approval to the enhancement of Dearness Allowance (DA) by 4% from July 2023. Typically, this approval is given by the Cabinet Committee of Economic Affairs in September. Central Government employees and pensioners are eagerly awaiting the announcement of the DA hike from July 2023.

Following the methodology established by the 7th Pay Commission, the Dearness Allowance (DA) percentage is determined by considering 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% effective from July 1, 2023.

The announcement regarding the Dearness Allowance (DA) is usually made biannually, specifically in March and September. This allowance is granted to government employees and pensioners in India, with two separate installments provided. The revised DA will come into effect in January and July of each year. These two increments in the DA aim to mitigate the impact of rising prices of essential goods and commodities.

The announcement of the second installment of a 4% additional Dearness Allowance (DA) for the current year, effective from July 2023, will be made soon after receiving approval from the Union Cabinet Committee.

42% + 4% = 46%

Dearness Allowance Arrears for July and August 2023

Starting in July 2023, Central Government Employees and Pensioners are set to receive a generous allocation of 46% Dearness Allowance and Dearness Relief. This allocation will be calculated based on their Basic Pay or Basic Pension.

To break it down further, for the month of July 2023, a significant portion of the DA, namely 42%, has already been disbursed, leaving a remaining 4% to be paid out as arrears.

Similarly, in the month of August 2023, an impressive 42% of the DA has already been distributed, with the outstanding 4% to be provided as arrears as well.

Looking ahead to September 2023, eligible recipients can anticipate the complete 46% DA to be bestowed upon them.


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