7th Pay Commission: The festive season has started in the country with Ganesh Chaturthi. Meanwhile, big news is coming for the central government employees. It is being told that central employees are soon going to get a festive gift in the form of increase in dearness allowance.
According to media reports, the Central Government may increase the DA rate for its employees and Dearness Relief (DR) rate for pensioners by 4%. However, earlier it was expected that the government would increase the DA/DR rate only by 3%.
If there is an increase of 4%, the effective DA rate of central government employees will increase from the current 42% to 46%. Let us tell you that the DA rate is decided on the basis of All India Consumer Price Index (AICPI-IW) data for industrial workers.
The current formula for determining DA rate is as per the recommendation of the 7th Pay Commission. As per AICPI-IW data and the formula recommended by the 7th Pay Commission, the DA hike could be around 4%.
Shiv Gopal Mishra, general secretary of All India Railwaymen Federation, told a newspaper that the expected DA increase is only 3%. The final decision on this will be taken by the Union Cabinet headed by the Prime Minister.
At the same time, it is expected that the government may announce the new DA/DR rate to be effective from July 1, 2023 by the end of this month or beginning of October.
How much will the monthly salary increase?
Like now DA/DR is going to increase soon. So in such a situation let us understand how the salary will increase. Suppose a central government employee is getting a basic salary of Rs 25,600 per month.
At the current rate of 42%, this employee is eligible for dearness allowance of Rs 10,752 (42% of basic pay). However, if DA increases to 46%, he will get Rs 11,776 as dearness allowance, which will increase his monthly salary (Rs 11,776-Rs 10,752) by Rs 1024.
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