Karnataka DA Hike: Check the new Dearness Allowance!

Professionals and retirees of the state government have long demanded a DA increase. The Karnataka government enhanced the Dearness Allowance (DA) of public employees and retirees on Tuesday from 31% to 35%, effective as of the first of January 2023.

Karnataka DA Hike

The Karnataka dearness allowance (DA), formerly 35% of the basic salary, was enhanced by 3.75% by the State government on Saturday to 38.75% of the basic pay for its workers under the 2018 revised pay scales. On July 1st, 2023, the hike will become effective. Additionally, it was declared that the salaries of judges and professors on the UGC/AICTE/ICAR scale will increase by 4%. The state government would spend a further Rs 1,109 crore due to the increase.

Karnataka DA to the statement from the Finance Ministry, the Union Cabinet, which is presided over by Prime Minister Narendra Modi, has given its blessing for the release of dearness allowance (DA) to government workers and cost relief (DR) to elderly people beginning on January 1, 2022. This is an increase of 3% over the current rate of 31%of the basic pay/pension and will help offset price increases.

Karnataka State Government Employees’ DA Schedule

Karnataka state DA Chart is particular accounting for 42% and 46% of the base pay. The table also illustrates how these two rates differ from one another. Likewise, it should be mentioned that starting on January 1, 2023, all types of Central government workers and officials would get an additional 4% of D.A.

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Karnataka DA Hike

Basic Pay 42% 46% DA Hike
18000 7560 8280 720
19900 8358 9154 796
21700 9114 9982 868
25500 10710 11730 1020
29200 12264 13432 1168
35400 14868 16284 1416
44900 18858 20654 1796
47600 19992 21896 1904
53100 22302 24426 2124
56100 23562 25806 2244
67700 28434 31142 2708
78800 33096 36248 3152

Present Rates of HRA in Karnataka DA Hike

The HRA rates in the X, Y, and Z class cities will not be less than Rs. 5400, Rs. 3600, and Rs. 1800, respectively. When Dearness Allowance (DA) passes 25%, the rates of HRA will be updated to 27%, 18%, and 9% for cities in the X, Y, and Z classes, correspondingly. When DA crosses 50%, the rates will be further reviewed to 30%, 20%, and 10%. 4.

Classes HRA Rates DA
X 5400 27%
Y 3600 18%
Z 1800 9%

The Human Resource Allowance (HRA) rates in the X, Y, and Z class cities will be at least Rs. 5400, Rs. 3600, and Rs. 1800, respectively. When Dearness Allowance (DA) passes 25%, the rates of HRA will be current to 27%, 18%, and 9% for cities in the X, Y, and Z classes, respectively. When DA reaches 50%, the levels will be revised to 30%, 20%, and 10%. 4.

Karnataka DA Hike Effects 

According to the leadership, Karnataka DA hike effects the directions would also apply to permanent government employees, zilla panchayat workers, full-time staff members of supported educational institutions, and full-time university staff members on regular pay schedules. 

  • The dearness allowance (DA) for central government employees has increased by 4% to 46%, while the dearness relief (DR) for retirees has increased by a comparable amount. The judgment would have a yearly effect of 12,857 crore ($1.74 billion), starting on July 1, 2023. 
  • Those employed under the 2012 Karnataka Daily Wage Employees Welfare act.

Due to the research, the dearness allowance order for workers of Boards, Corporations, Local Bodies, and employees of government or autonomous institutions under the supervision of the state government may be subject to amendment. The Karnataka government released the following statement on the matter: “Government is glad to grant the additional installments of the dearness allowance for the period January 1, 2020, to June 30, 2021. 

How much HRA is free from tax?

Tax-free status for the whole HRA is not usually guaranteed. The smallest of the three categories that follow must be assumed to be free from taxation. HRA that your employer-provided

  • Rent paid in whole less 10% of pay
  • 50% of the basic pay for those who live in big cities
  • 40% of the basic income for residents of metropolitan regions

Your taxable pay is increased by the remaining HRA. You can quickly determine your HRA exemption using our calculator.

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