DA hiked for central govt staff paid as per pre-revised 6th, 5th pay commission scales All you need to know
The dearness allowance (DA) for the central government employees drawing salaries as per the 6th pay commission and 5th pay commission has been increased. This has been announced by the Department of Expenditure (DoE) of the Finance Ministry via an official memorandum dated October 12, 2022.How much Dearness Allowance has been hiked for the central govt employees?
The Union government has raised the Dearness Allowance for the employees of the central government and central autonomous bodies who withdraw salaries as per the pre-revised pay scale or grade pay of the 6th central pay commission from the existing 203 per cent to 212 per cent of the basic pay. The revised rate of the dearness allowance comes into effect on July 1, 2022.
Dearness Allowance for the central government employees and central autonomous bodies' employees, who get their salaries as per the pre-revised pay scale or grade pay of the 5th central pay commission, will be increased from the existing 381 per cent to 396 per cent. The new rate of dearness allowance is effective from July 1, 2022, according to the official memorandum by the Department of Expenditure.
How much salary will increase after the latest DA hike as per 6th pay commission
The hike in DA is calculated on the basic pay of a government employee. For example, suppose a central government employee’s basic pay is Rs 43,000 per month. She is drawing a salary as per 6th pay commission. As per the office memorandum dated October 12, 2022 by the DoE, the DA will increase to 212 per cent from the existing 203 per cent.
| Particulars | Amount (Rs) |
| Old DA amount | 87,290 |
| New DA Amount | 91,160 |
From the above table, it can be seen that the DA hike is of Rs 3,870.
Why DA was hiked
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 34 per cent to 38 per cent on September 28, 2022. The revised rate is applicable from July 1, 2022.
Also read: 7th pay commission: Dearness allwance (DA) hiked by 4% for central govt employees, pensioners
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.
What is Dearness Allowance and how is it calculated as per 7th pay commission?
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.
Also Read: DA hiked by 4% to 38%: How much central Government employee's salary will increase?
To calculate the dearness allowance, the term 'basic pay' in the revised pay structure means the pay drawn at the prescribed level in the pay matrix as per the 7th pay commission recommendations accepted by the government, the Department of Expenditure said in an official memorandum dated October 3, 2022.The 'basic pay' does not include any other type of pay like special pay, etc.
"An increase in this allowance, particularly at a time when worldwide inflation is on the rise, seems like a much-needed aid for salaried workers," said Archit Gupta, founder, and CEO, Clear.
This story originally appeared on: India Times - Author:Tax Cognition
