The dearness allowance (DA) for certain Central Government employees drawing salaries as per the 6th pay commission and 5th pay commission has been hiked. This has been announced through an Office Memorandum dated November 16, 2023, by the Department of Public Enterprises of the Finance Ministry.
How much Dearness Allowance has been hiked for these 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, the Office Memorandum said. The revised rate of the dearness allowance came into effect on July 1, 2023. “These rates are applicable in the case of CIDA employees whose pay has been revised with effect from 01.01.2006 as per DPE O.M. dated 14.10.2008,” the Office Memorandum said.
How much salary will 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, suppose a Central Government employee’s basic pay is Rs 43,000 per month. 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
Here’s how DA will be paid to the employees of CPSEs following CDA pattern pay scales, who are governed by H1PPC 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:-
a) In case of CPSFs 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 trom existing rate of 462% to 477% w.e.f. 01.07.2023, as per the Office Memorandum.
b) 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 existing rate of 412% to 427% w.e.f. 01.07.2023, as per the Office Memorandum.
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 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.
