Central government employees are looking forward to their second salary increase of the year. Earlier, their Dearness Allowance (DA) was increased by 4% to 50% in March, effective from January 2024.
The government updates DA twice a year, once for January-June and again for July-December.
The next salary increase is expected to be announced around Diwali this year. More than 50 lakh employees and 68 lakh pensioners will receive back pay from July 2024.
There are also rumors that the government might add the DA to the basic salary since it will exceed 50% after the next increase.
The only time this happened was in 2004 during the 5th Pay Commission when the DA reached 50%. The 6th Pay Commission did not suggest this change.
HOW DA HIKE IS CALCULATED
The Dearness Allowance (DA) for employees and Dearness Relief (DR) for pensioners are based on the All-India Consumer Price Index (AICPI).
The Government updates DA and DR twice a year, in January and July.
The formula to calculate Dearness Allowance is:
Dearness Allowance %
= ((Average of AICPI (Base Year – 2001=100) for the past 12 months -115.76)/115.76) *100″
| Month/ Year | CPI(IW) BY2016=100 |
DA% Monthly Increase |
| July 2023 | 139.7 | 47.15 |
| August 2023 | 139.2 | 47.98 |
| September 2023 | 137.5 | 48.55 |
| October 2023 | 138.4 | 49.09 |
| November 2023 | 139.1 | 49.70 |
| December 2023 | 138.8 | 50.27 |
| January 2024 | 138.9 | 50.83 |
| February 2024 | 139.2 | 51.43 |
| March 2024 | 138.9 | 51.94 |
| April 2024 | 139.4 | 52.42 |
| May 2024 | 140.0 | 52.93 |
| June 2024 | 140.7 | 53.31 |
ALSO CHECK
8TH CPC BASIC SALARY CALCULATOR (EXPECTED)
CONCLUSION
In summary, the Expected DA from July 2024 is more than just a number; it’s important for Central Government Employees.
Knowing how DA is calculated, understanding the role of AICPIN, and using the DA Calculator helps employees make better financial decisions.