The Cabinet on Wednesday has approved a significant increase in Dearness Allowance (DA) for central government employees and pensioners. According to the reports, the cabinet has raised dearness allowance by 4 percent after which over 1 crore central employees and pensioners will benefit from this growth. Along with this, the monthly salary of government employees has also increased.
The Cabinet has endorsed 4 percent increase in DA for central government employees and pensioners. The new rate of DA will be applicable from July 2023. After this addition, DA of central government emplyees has been increased to 46 percent. Till now, 42 percent dearness allowance was being given to the central employees, which was implemented from March 2023.
Central employees’ monthly allowances will increase as a result of the Cabinet’s decision to raise dearness allowance, which is intended to assist them in managing the rising cost of living. This action is anticipated to provide respite in the midst of economic hardships for a sizable portion of the workforce and retired individuals.
How to calculate revised monthly salary
A Central Government employee’s basic wage of Rs 36,500 per month would have been Rs 15,330 per month if 42% of that amount was deducted as overtime. As of July 2023, DA will rise by 4% to 46%. The employees will receive an additional DA payment of Rs 1,460 in such a scenario. Now, the total DA amount will be Rs 16,790 if we do Rs 15,330+1460.
In such a manner, the monthly salary of a central government employee whose basic salary is Rs 36,500 will receive an increase of Rs 1,460 per month in his income.