7th Pay Commission DA Latest Update: According to media reports, the Central Government employees are expected to get some good news regarding their salary.
Reports indicate that after the 4 per cent hike in Dearness Allowance and Dearness Relief in September, the government may further hike DA and DR by 3-5 per cent in March 2023. According to reports, lakhs of central government employees are also waiting for DA arrears of 18 months.
Let us tell you, the government increased DA and DR by 4 percent in September, which benefited 48 lakh central government employees and 68 lakh pensioners in the country before Diwali and festive season. After the hike, the DA or DR became 38 per cent of the basic pay or pension, respectively, with effect from July 1, 2022. Earlier, DA was revised in March.
The DA hike has increased the inflationary component of the salary of central government employees. For example, if one’s salary is Rs.50,000 per month and Rs.15,000 as basic pay. Till now you get Rs 5,100, which is 34% of the basic pay. However, now after the 4% hike, you will get Rs 5,700 per month, which is Rs 600 more. So, if you have a salary of Rs 50,000 in a month with Rs 15,000 as basic pay, your salary will increase by Rs 600 per month.
The DA and DR hike is decided on the basis of percentage increase in 12 monthly average of All India Consumer Price Index (AICPI) for the period ending June 2022 . Though the central government revises the allowances every year on January 1 and July 1, the decision is generally announced in March and September.
In March, the Union Cabinet approved a 3 per cent increase in DA under the 7th Pay Commission, thus taking DA to 34 per cent of basic income. In 2006, the central government revised the formula for calculating DA and DR for central government employees and pensioners.
Dearness Allowance Percentage = ((Average of All India Consumer Price Index numbers for last 12 months (Base year 2001=100) -115.76)/115.76)x100.
For Central Public Sector Employees: Dearness Allowance Percentage = ((Average of All India Consumer Price Index numbers for last 3 months (Base year 2001=100) -126.33)/126.33)x100.
