42% DA/DR to Central Govt Employees and Pensioners from Jan 2023!

Confirmed 42% Dearness Allowance from January 2023 to Govt Employees – AICPIN for the month of November 2022 released

Dearness Allowance is an important part of any salary package as it helps employees cope with the rising cost of living. It is usually calculated based on the Consumer Price Index and other factors such as the cost of living in the area and the employee’s salary. The CPI is a measure of the average change in prices over time for a basket of goods and services. The Central Government use the new series of Consumer Price Index for Industrial Employees (Base Year 2016) to determine how much dearness allowance to provide to their employees and pensioners. Dearness allowance provides several benefits to employees, pensioners, and family pensioners, including helping them maintain their standard of living despite inflation and being a deciding factor when it comes to choosing a job.

42% DA/DR Almost Confirmed!

The All-India Consumer Price Index for Industrial Workers (CPI-IW) remained the same in November 2022, according to a press release from the Labour Bureau. Consequently, the Dearness Allowance for January 2023 is now at the final stage! The data of this month’s CPI-IW indicates a 4% growth, resulting in a 42% increase in DA/DR for Central Government Employees and Pensioners as per the Seventh Central Pay Commission. If the AICPIN index for the month of December 2022 will go up more than 7 points or more than 5 points decreasing from the existing level only could change the prediction of ‘Expected DA from Jan 2023’! Otherwise, the 42% Dearness Allowance (DA) from January 2023 is almost confirmed!

42% DA Calculation Table

If the AICPIN index number for the month of December will be 132.5, the additional DA/DR for Central Government employees, pensioners, and family pensioners will be 4%! The total DA/DR will move up to 42%!