7th Pay Commission: Big Increase in Salary Expected for Government Employees by September
There is good news for government employees as there may be a significant increase in their salary by the end of September. This increase will benefit more than 1 crore central employees and pensioners. The government is likely to announce a hike in the Dearness Allowance (DA) for central government employees in September.
The increase in salary will be effective from July 2023. According to the AICPI data for January to June 2023, the inflation allowance is expected to increase from July 2023. Currently, employees are receiving a 42 percent dearness allowance, which may increase to 46 percent in the coming days.
The Labor Bureau has reported that the AICPI-IW figure stood at 136.4 in June 2023. Based on this, the total dearness allowance may increase by 4% to 46.24%. This means that the DA of employees can be increased from 42 percent to 46 percent. The announcement regarding this is expected to be made in the cabinet meeting on September 27.
Experts believe that a 34 percent hike in the dearness allowance of central employees under the Seventh Pay Commission can bring them significant relief. For example, if an employee’s basic salary is Rs 30,000 per month, this increase will raise their salary by Rs 1,200 per month. Their total pay will be increased by Rs 14,400 on an annual basis. The salary of Cabinet Secretary level officers, which is currently the highest at Rs 2,50,000 per month, will also see an increase.
Inflation has been steadily increasing in the last two months, and the AICPI figures for July are positive. However, this increase will not be calculated in retroactive inflation allowance. Nevertheless, experts estimate a 4 percent increase in dearness allowance. Dearness Allowance (DA) under the 7th Pay Commission is given to government employees to enhance their standard of living.
Dearness allowance is given to government employees, pensioners, and public sector employees to ensure they can maintain their standard of living despite inflation. It is usually revised every 6 months, but the government announces it as per policy, and the hike in dearness allowance is implemented from January to July.
The calculation of dearness allowance is based on basic pay and is determined by the Consumer Price Index (CPI). The percentage of inflation allowance is calculated using the formula: Average of last 12 months CPI – 115.76, divided by 115.76, and multiplied by 100.
Disclaimer: Investing in mutual funds and the stock market carries risks. It is advised to consult a financial advisor before making any investment decisions. AkhandIndia.com shall not be liable for any financial loss.
News Title: 7th Pay Commission central government employees DA hike on 14 September 2023.
