7th Pay Commission | Announcement of Dearness Allowance Hike Expected Soon

As the festive season approaches, crores of central government employees are eagerly awaiting the announcement of a dearness allowance hike from the Centre. According to media reports, the central government is likely to announce a hike in dearness allowance soon.

After Navratri, the increase in dearness allowance is expected to be announced. However, no official announcement has been made regarding the exact date of dearness allowance for government employees.

How much DA should be increased?

The increase in dearness allowance, effective from July 1, 2023, is likely to be 3 percent this year, which will go up to 45 percent. Many state governments have already increased the dearness allowance of employees by 3 percent from January 1, 2022.

Central Government employees should note that Dearness Allowance is calculated based on the latest Consumer Price Index for Industrial Workers (CPI-IW) released every month by the Labor Bureau.

According to the latest data, the All India CPI-IW for July 2023 increased by 3.3 points to 139.7. On a month-on-month percentage change, the index has increased by 2.42 percent over the previous month, compared to an increase of 0.90 percent in the corresponding months last year.

How much salary increase will there be?

A 3 percent increase in inflation allowance will raise the salary of central government employees. For example, if an employee’s salary is Rs 50,000 per month and the basic pay is Rs 15,000, they are currently getting a dearness allowance of Rs 6,300, which is 42 percent of the basic pay. However, after the expected 3 percent hike, the dearness allowance will be Rs 6,750 per month, which is Rs 450 more than before. So, if an employee gets 50 thousand rupees per month and a basic salary of 15 thousand rupees, their salary will increase by 450 rupees per month.

How much DA is paid to employees now?

Government employees are given DA, while pensioners are given DR. Generally, DA and DR are raised twice a year – January and July. At present, one crore central government employees and pensioners are receiving 42 percent dearness allowance.

Last time, the dearness allowance was increased by 4 percent to 42 percent in March 2023. Given the current rate of inflation, the next inflationary allowance is expected to increase by 3 percent, according to various reports.

Disclaimer: Investing in mutual funds and the stock market is based on risks. Be sure to consult your financial advisor before investing in the stock market. AkhandIndia.com shall not be liable for any financial loss.

News Title: 7th Pay Commission DA Hike soon 17 September 2023.

Serving "जहाँ Indian वहाँ India" Since 2014. I Started News Desk in Early Days of India Internet Revolution and 4G. I write About India for Indians.

Leave a comment

Your email address will not be published. Required fields are marked *