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7th pay commission: New year cheer for Central government employees, DA likely to be hiked in January!

7th pay commission: There is more good news for central employees. Following the 4% increase in DA in September, the central government is planning to give big gifts to its employees in the coming year. The first is an increase in Dearness Allowance, and the second is a change in the Fitment Factor. If this […]

Edited By : Divya Richa | Updated: Nov 23, 2022 15:38 IST
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7th Pay Commission

7th pay commission: There is more good news for central employees. Following the 4% increase in DA in September, the central government is planning to give big gifts to its employees in the coming year. The first is an increase in Dearness Allowance, and the second is a change in the Fitment Factor. If this occurs, the salary of central employees will skyrocket in the coming year 2023. Central employees’ salaries are expected to double, according to estimates.

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Central government employees’ dearness allowance is reviewed every six months. The dearness allowance is increased twice in a year based on AICPI data. This expansion occurs between January and July. The dearness allowance of central employees will be increased in 2023, as it is reviewed twice a year. The January 2023 dearness allowance will be announced before March. Looking at the inflation figures so far, it appears that a 4 percent DA hike may occur next year as well. The AICPI index numbers for October, November, and December, on the other hand, have yet to be released. Based on current inflation figures, it appears that the DA of central employees will increase by 4% next year as well. If this occurs, the cost of central employees will rise from 38 percent to 42 percent.

The Labor Ministry has released the All India Consumer Price Index- Industrial Workers figures (AICPI). This figure was 131.2 in September. In comparison to June, the overall AICPI index increased by 2.1% until September 2022. There was a 1.1 percent increase from August of last month. The AICPI index numbers for October, November, and December, on the other hand, have yet to be released.

Dearness allowance revised twice a year

Actually, central government employees’ dearness allowance is revised twice a year. The first is available from January to June, while the second is available from July to December. Let us tell you that the AICPI index is important  in deciding the dearness allowance of central employees.

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How much salary will increase?

  • Calculation on minimum basic salary of Rs 18,000
  • Employee’s basic salary Rs 18,000
  • New Dearness Allowance (42%) Rs.7560/month
  • Dearness Allowance till now (38%) Rs.6840/month
  • How much dearness allowance increased 7560-6840 = Rs 720/month
  • Increase in annual salary 720X12= Rs 8640

Calculation on maximum basic salary of Rs.56900

  • Employee’s basic salary Rs 56900
  • New Dearness Allowance (42%) Rs 23898/month
  • Dearness Allowance till now (38%) Rs 21622/month
  • How much dearness allowance increased 23898-21622 = Rs 2276/month
  • Increase in annual salary 2276X12 = Rs 27312

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First published on: Nov 22, 2022 11:53 AM IST
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