Ministry of Finance issued DA Order for payment of Revised Dearness Allowance from 1.7.2023

Exploring the Ministry of Finance’s DA Order for Dearness Allowance, Effective 1.7.2023

In a significant development, the Ministry of Finance issued DA Order, which is set to take effect from the 1st of July, 2023. This order carries substantial implications for employees and government personnel, ensuring they receive adequate financial support. Let’s delve into the details of this vital update:

Understanding the DA Order

The DA Order, issued by the Ministry of Finance, is to provide financial relief to employees and government workers by increasing the rate of DA from 42% to 46%. This allowance serves to counter the impact of inflation on their earnings. The government periodically revises this allowance to ensure that employees can maintain their living standards.

Key Highlights of the DA Order for revised Dearness Allowance

The latest DA Order, effective from the 1st of July, 2023, comes with several key highlights:

1. Percentage Increase
   One of the primary aspects of this order is the percentage increase in the Dearness Allowance. The government has enhanced the allowance to alleviate the financial burden faced by employees. This increase is in response to rising living costs and inflation.
2. Impact on Salaries
   With the new DA Order in place, employees can expect a positive impact on their salaries. This adjustment will provide them with the financial security they need, ensuring that their earnings keep pace with the ever-changing economic landscape.
3. Relief for Pensioners
   The Ministry of Finance has also considered the welfare of pensioners. DoPPW will issue order subsequently for payment of Dearness Relief for Pensioners. The increase in the Dearness Allowance will benefit not only current employees but also retired individuals, offering them enhanced financial security in their post-retirement years.

The Significance of Ministry of Finance issued DA Order

The Ministry of Finance’s decision to issue the DA Order demonstrates the government’s commitment to the well-being of its employees and pensioners. By ensuring that the Dearness Allowance keeps pace with the cost of living, the government is taking a proactive step in safeguarding the financial interests of its workforce.

DA Arrears for three months will be paid to all employees and Pensioner on account of increased dearness allowance from 1st July 2023 : Calculate your DA Arrears

View the Order issued by Ministry of finance

No. 1/4/2023-E-II(B)
Government of India
Ministry of Finance
Department of Expenditure

North Block, New Delhi
Dated the 20th October, 2023.

OFFICE MEMORANDUM

Subject: Revision of rates of Dearness Allowance to Central Government employees-effective from 01.07.2023.

The undersigned is directed to refer to this Department’s Office Memorandum No. 11112023­E-11 kB) dated April, 2023 on the subject mentioned above and to say that the President is pleased to decide that the rates of Dearness Allowance payable to Central Government employees, shall be enhanced from 42% to 46% of the Basic Pay with effect from 1st July, 2023.

Calculate Expected DA from January 2024

2. The term Basic Pay in the revised pay structure means the pay drawn in the prescribed Level in the Pay Matrix as per 7th CPC recommendations accepted by the Government, but does not include any other type of pay like special pay, etc.
3. The Dearness Allowance will continue to be a distinct element of remuneration and will not be treated as pay within the ambit of FR 9(21).
4. The payment on account of Dearness Allowance involving fractions of 50 paise and above may be rounded to the next higher rupee and the fractions of less than 50 paise may be ignored.
5. These orders shall also apply to the civilian employees paid from the Defence Services Estimates and the expenditure will be chargeable to the relevant head of the Defence Services Estimates. In respect of Armed Forces personnel and Railway employees, separate orders will be issued by the Ministry of Defence and Ministry of Railways respectively.
6. In so far as the persons serving in the Indian Audit and Accounts Department are concerned, these orders are issued in consultation with the Comptroller and Auditor General of India, as mandated under Article 148(5) of the Constitution of India.

Ram Gopal
Deputy Secretary to the Government of India

View the Finmin DA order pdf