7th Pay Commission DA Hike : Another good news is coming for the central government employees and pensioners, but this time the expectations may be dashed a little. This time there is less hope of a 4 percent increase in DA.
The government is going to announce an increase in Dearness Allowance (DA) and Dearness Relief (DR) soon. This announcement will bring great relief to those lakhs of employees and pensioners whose salary is based on the recommendations of the 7th Pay Commission. The central government usually revises the dearness allowance twice a year in January and July. However, the government officially announces these revisions a little late but gives the DA arrears of the previous month along with the salary. This time also the employees are expecting an increase in DA. However, this time there is less hope of a 4 percent increase in DA.
How much increase can there be this time?
The basis of calculation of dearness allowance is the Consumer Price Index for Industrial Labour (CPI-IW), which is released monthly by the Labor Bureau under the Ministry of Labor. The formula for calculation of dearness allowance under the 7th Pay Commission is as follows.
Also Read: 7th Pay Commission implemented! Govt has announced an increase in the salary of these employees under the 7th Pay Commission
7th CPC DA% = [{Average of last 12 months AICPI-IW (Base Year 2001=100) – 261.42}/261.42×100]
If this formula is applied to the current figures, the estimated dearness allowance will be 53.35%. Currently, central government employees and pensioners are getting 50% dearness allowance and dearness relief. This means that the upcoming hike will increase dearness allowance by about 3%.
How much will it affect the salary?
This increase will have a big impact on the salary of a government employee whose basic salary is ₹55,200 monthly. Currently, the employee is getting ₹27,600 as per 50% dearness allowance. If the dearness allowance becomes 53%, it will increase to ₹29,256. Thus, his salary will increase by ₹1,656.
May be announced in September
This periodic review of dearness allowance is very important as it helps in maintaining the purchasing power of government employees. In the era of rising prices, this increase will prove to be a necessary relief for the employees. A positive announcement can be expected in the coming days for central government employees and pensioners, which will lead to a significant increase in their salary.
Related Article:-Â
Bank Holiday Alert: Banks will remain closed for 3 consecutive days from tomorrow, see list here
FASTag New Rule: RBI allows e-mandate for auto replenishment of FASTag. NCMC
