7th Pay Commission: The Central government on Friday gave a big gift to over 1 crore employees amid the ongoing festivals of Navaratri and Ramazan. The Modi government on Friday announced a 4 percent increase in the Dearness Allowance (DA Hike) of central employees and Dearness Relief (DR Hike) of pensioners. This news brings a cheers among the employees who have been waiting the announcement for long.
After this announcement, dearness allowance and dearness relief of central employees and pensioners have increased from the existing 38 percent to 42 percent. About 48 lakh central employees and 68 lakh pensioners have been directly benefited by this announcement of the central government.
It was approved after reviewing the figures of Dearness Allowance (7th Pay Commission) in the cabinet meeting held on Friday 24 March under the leadership of Prime Minister Narendra Modi. The central government agreed to increase the dearness allowance from 38 to 42 per cent. After this consent, now the Finance Ministry will notify it. After the issue of notification in dearness allowance, the increase in salary of central employees will be implemented. This increase will be considered applicable from January 1, 2023. While the salary for March will be paid along with the new dearness allowance. Wherein January and February will get 2 months arrear (DA Arrear).
7th Pay Commission: DA increased to 42 %
It is worth noting that the central employees (7th Pay Commission) are currently being paid DA at the rate of 38 per cent. If it increases by 4 percent, it will increase to 42 percent. After this, the annual dearness allowance will increase to Rs 90,720 for those with a basic salary of Rs 18,000. Talking about the difference from the existing dearness allowance, the salary will increase by Rs 720 per month and Rs 8640 annually. At the same time, there will be an increase of Rs 2276 per month in the salary of employees with a basic salary of Rs 56900 per month. Means the salary will increase by Rs 27312 on annual basis.
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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
Lakhs of employees and pensioners will be benefited
Lakhs of employees of the country were eagerly waiting for this. This will benefit 65 lakh central employees and 48 lakh pensioners. After this, on July 1, 2023, there will be an increase in the DA of central employees once again.
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The increase in Dearness Allowance and Dearness Relief (7th Pay Commission) is announced on the basis of AICPI figures released by the Ministry of Labour. That is, on the basis of AICPI-IW data, allowance is given to the employees by calculating inflation. DA and DR have revision every 6 months. The last DA revision was done on 28 September 2022, before Diwali. It was considered applicable from 1 July 2022. Then it was increased by 4 percent. Then the DA was 34 per cent, which was increased to 38 per cent. It has once again increased by 4 percent.
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