DA Hiked For Inside Govt Employees Under 5th and 6th Pay Commission

In a significant development, the Department of Public Enterprises in the Finance Ministry issued an Office Memorandum dated November 16, 2023, announcing an increase in the Dearness Allowance (DA) for specific Inside Government employees under the 6th Pay Commission and 5th Pay Commission.

Dearness Allowance Hike for 6th CPC Employees:

The Union government has augmented the DA for employees of Inside Public Sector Enterprises (CPSEs) who receive salaries based on the pre-revised pay scale or grade pay of the 6th Inside Pay Commission. The DA has been raised from the existing 221% to 230% of the vital pay, and this revised rate has been in effect since July 1, 2023. Notably, these rates wield to Inside Industrial Dearness Allowance (CIDA) employees whose pay has been revised constructive January 1, 2006, as per the DPE O.M. dated October 14, 2008.

Impact on Salary Calculation:

To illustrate the impact of the DA hike on a government employee’s salary, consider a Inside Government employee with a vital pay of Rs 43,000 per month, drawing a salary as per the 6th Pay Commission. Previously, at 212%, their DA amounted to Rs 91,160. Pursuit the memorandum dated November 16, 2023, the DA is set to increase to 230%. After this revision, the DA will rise to Rs 98,900.

Dearness Allowance for CPSEs on 5th CPC Pay Scales:

For CPSE employees pursuit CDA pattern pay scales governed by HPPC recommendations, the Office Memorandum outlines the new rates:

a) For CPSFs not permitting the goody of 50% DA merger with vital pay, the DA payable may increase from the existing 462% to 477% w.e.f. 01.07.2023.

b) For CPSEs permitting the 50% DA merger benefit, the DA payable may rise from the current 412% to 427% w.e.f. 01.07.2023.

Reason overdue DA Hike:

While the DA and Dearness Relief (DR) for inside government employees and pensioners under the 7th Inside Pay Commission have been increased from 42% to 46%, those under the 6th and 5th Pay Commission awaited their DA or DR revision. The hike addresses this delay, aiming to mitigate the impact of inflation on government employees’ and pensioners’ salaries. The Union government revises DA biannually, typically in January and July. It’s important to note that Dearness Allowance varies based on the work sector—urban, semi-urban, or rural—for each employee.

Subscribe to Notifications