Union Government Raises Dearness Allowance for Central Govt Employees as per 6th Pay Commission

Key Takeaways:

• Dearness Allowance for CPSE employees as per the 6th CPC has been raised from 221% to 230% of the basic pay.
• The revised rate of the dearness allowance came into effect on July 1, 2023.
• DA hike is calculated based on the basic pay of the employees, resulting in an increase in their overall salary.
• DA rates for CPSE employees following CDA pattern on 5th CPC pay scales governed by HPPC recommendations have also been revised.
• The DA and DR for central government employees and pensioners drawing salaries as per the 7th Central Pay Commission have been increased from 42% to 46%.
• Dearness Allowance is aimed at soothing the impact of inflation on the salaries of government employees and pensioners.

The Dearness Allowance (DA) for certain Central Government employees drawing salaries as per the 6th Pay Commission and 5th Pay Commission has been hiked. The revised DA will be applicable from July 1, 2023. Let’s break down the information provided and answer your questions step by step.

Dearness Allowance Hike for Central Govt Employees as per the 6th CPC The Union government has raised the Dearness Allowance for the employees of the Central Public Sector Enterprises (CPSEs) who withdraw salaries as per the pre-revised pay scale or grade pay of the 6th Central Pay Commission from the existing 221% to 230% of the basic pay, as per the Office Memorandum dated November 16, 2023, by the Department of Public Enterprises of the Finance Ministry.

Calculation of Salary Increase after the Latest DA Hike as per the 6th Pay Commission

The hike in DA is calculated on the basic pay of a government employee. For example, if a Central Government employee’s basic pay is Rs 43,000 per month and she is drawing a salary as per the 6th pay commission, at 212%, her DA was Rs 91,160. As per the office memorandum dated November 16, 2023, the DA will increase to 230% from the existing 212%. So, after the revision, the DA will jump to Rs 98,900.

Payment of DA to the CDA Pattern Employees of CPSEs on 5th CPC Pay Scales Governed by HPPC Recommendations

The rates of Dearness Allowance payable to the employees of CPSEs governed by the recommendations of HPPC, which have not revised their pay scales in terms of DPE O.M. No. 2(54)/2008-DPE(WC) dated 14.10.2008, may be as follows:

In case of CPSEs who have not allowed the benefit of merger of 50% of DA with basic pay as contained in DPE O.M. dated 24.05.2005 to their employees, the DA payable may be enhanced from the existing rate of 462% to 477% w.e.f. 01.07.2023, as per the Office Memorandum.

In case of CPSEs who have allowed the benefit of merger of 50% of DA with basic pay as contained in DPE O.M. dated 24.05.2005 to their employees, the DA payable may be enhanced from the existing rate of 412% to 427% w.e.f. 01.07.2023, as per the Office Memorandum.

Reason for DA Hike

The Dearness Allowance and Dearness Relief (DR) for central government employees and pensioners drawing salaries as per the 7th Central Pay Commission have been increased from 42% to 46%. The revised rate is applicable from July 1, 2023. However, those employees and pensioners drawing salary or pension as per the 6th pay commission or 5th pay commission were awaiting their DA or DR revision from the government. Dearness Allowance is a component of salary of the government employees and pensioners, aimed at soothing the impact of inflation. To cope with the rising inflation, the effective salary of government employees is revised periodically. The Union government revises DA twice every year – in January and July.

It must be noted that Dearness Allowance varies from employee to employee based on whether they work in the urban sector, semi-urban sector, or rural sector.

FAQ

Q1: What is the revised Dearness Allowance for CPSE employees as per the 6th CPC?

A1: The Dearness Allowance for CPSE employees as per the 6th CPC has been raised from 221% to 230% of the basic pay, effective from July 1, 2023.

Q2: How is the hike in Dearness Allowance calculated?

A2: The hike in DA is calculated based on the basic pay of the government employees, resulting in an increase in their overall salary.

Q3: Why was the Dearness Allowance hiked?

A3: The hike in Dearness Allowance is aimed at soothing the impact of inflation on the salaries of government employees and pensioners.