7th Pay Commission Dearness Allowance Hike notification: Office Memorandum (OM) for the revised rates of Dearness Allowance to Central Government employees has been issued by the Department of Expenditure (DOE) of the Ministry of Finance on Monday, 3 October 2022. . DoE has stated in the Office Memorandum that the revised DA rate will be applicable from July 1, 2022. Here we are telling you about 5 things of Office Memorandum.
1. New DA Rate
The rate of Dearness Allowance payable to Central Government employees has been increased from 34% to 38% of basic pay with effect from July 1, 2022.
2. Calculation of DA on Basic Pay
Dearness allowance is calculated on the basic pay. According to the recommendations of the Seventh Pay Commission, the government has got the basic pay at the prescribed level in the pay matrix. It does not include any allowance.
3. Dearness Allowance will not be treated as pay under FR9(21)
DA allowance has its own importance. It is not treated as salary within the purview of Fundamental Rule 9(21). This is different from the basic salary.
4. DOE said this in the Office Memorandum
DoE has said in the office memorandum that if 50 paise or more in dearness allowance comes in DA calculation, then it will be counted as Re 1. If 50 paise comes out, it will be seen as a fraction of less than 50 paise.
5. Separate order will come for Railways, Defense personnel
The revised DA rates for Armed Forces personnel and Railway employees will be issued separate orders by the Ministry of Railways and Ministry of Defence. The government had revised the DA rates in the last week of September. The rate of dearness relief for central government pensioners has also been increased to 38%.
