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7th Pay Commission: Central Govt employees likely to Rs 2 lakh DA arrears; Step-wise Calculation here

7th Pay Commission: The Central Government employees are likely to get another DA hike from 42% to 45% in July 2023. As per the recommendations of 7th Pay commission, dearness allowance is revised every 6 months. The last DA hike had been declared in April and the arrears from January 2023 are likely to disbursed […]

Edited By : Divya Richa | Updated: Jul 28, 2023 14:10 IST
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7th Pay Commission

7th Pay Commission: The Central Government employees are likely to get another DA hike from 42% to 45% in July 2023. As per the recommendations of 7th Pay commission, dearness allowance is revised every 6 months. The last DA hike had been declared in April and the arrears from January 2023 are likely to disbursed in the April salary of central government employees. However, as per the sources, the next DA hike are supposed to be announced in July this year but the period is extended and it is expected that the DA hike will be announced in August.

DA is revised according to the current consumer Price Index Numbers for Industrial workers (CPI-W index). The CPI-IW for April increased by .9 points and stood at 134.2 points. it is increased by .68% as compared to last month.

According to the calculation of 7th Pay commission, the DA may increase from 3% to 4 %. as per experts’ opinions, the index number does not change in coming months and it remains at 132.7 points. there is still at least 3 % increase in DA. If there is sharp rise in inflation, then DA will be hiked by 4% in July- taking rise to 46% in July.

Increase in DA-DR

The central government may soon give the gift of increase in dearness allowance and dearness relief to about 1.75 crore central employees and pensioners of the country. Based on the data of AICPI Index, central employees and pensioners are expecting a 4 percent increase in their Dearness Allowance (DA Hike) and Dearness Relief (DR Hike) this time too. If this happens, his current DA will increase from 42 to 46 per cent. If this happens, his salary can increase from Rs 8,000 to Rs 27,000 annually.

Increase in HR allowance

Along with the increase in Dearness Allowance, there is also an expectation of increase in House Rent Allowance to the central employees. In fact, the central government last revised their house rent allowance in July 2021. In such a situation, these people are hopeful that the Central Government may soon increase their House Rent Allowance (HRA) by 3 percent. If this happens, more than 50 lakh employees of the center will be directly benefited.

Increase in fitment factor

Currently, the central employees are getting the benefit of fitment factor at the rate of 2.57%, but they are demanding that it can be increased to 3.68%. If the fitment factor is increased from 2.57 to 3.68, then the minimum basic pay will increase from Rs 18,000 to Rs 26,000.

7th Pay Commission: DA arrears

The central employees are demanding payment of DA arrears for 18 months from the government which were withheld during Covid period. If this happens, then the central employees can get a benefit of up to Rs 2,00,000. Although the central government has refused to pay DA arrears on several occasions in the past.

7th Pay Commission: Calculation

It is noted that the Department of Public Enterprises (DPE) has updated the DA rates for the central government employees. The hike in DA rates will be due from July 1, 2023. The increased DA rates will be 701.9% starting on July 1, 2023, with a minimum of Rs.15,428 and a maximum of Rs.3,500 in basic salary per month.

526.4% of pay with a minimum payment of Rs.24,567 is due for basic pay over Rs.3,500 and up to Rs.6,500. On the other hand, 421.1% of pay with a minimum payment of Rs. 34,216 is required for basic pay per month of more than Rs.6,500 and up to Rs.9,500.

351.0% of the pay, with a minimum payment of Rs. 40,050, is due for basic pay in excess of Rs. 9,500 every month.

First published on: Jul 28, 2023 02:10 PM IST

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