7th pay commission hike: The wait for central employees is about to end. Gifts are going to be received in the festive season. The gift of 4 percent dearness allowance is about to arrive. There will be a wait for just a few more days, after which new rates will be added to their existing DA rates.
7th pay commission hike: Central employees will spend their festivals with joy. The central government may soon approve the increase in dearness allowance in the cabinet. There is to be a total increase of 4 percent in dearness allowance. The current dearness allowance is 42 percent. If only 4 percent is approved, then from July 1, 2023, central employees will get 46 percent dearness allowance. The difference in dearness allowance for July, August and September will be paid as arrears. Last time the government had increased dearness allowance in March 2023.
When will dearness allowance be approved?
Generally dearness allowance is increased before Dussehra in October. This time too it is expected that the dearness allowance will be increased before Dussehra. But, if sources are to be believed, this time the dearness allowance will increase right after Dussehra. According to the information, it can be approved in the cabinet on October 25. However, no formal date has been announced by the government. This has been indicated by the sources of Zee Business.
Payment will be made in October salary
DA-DR payment to central employees and pensioners drawing salary under the 7th Pay Commission will be made by the end of October. Allowances will be added to the employees’ salary. At the same time, payment will be made after adding the arrears of 3 months also. At the same time, an additional payment of 4 percent will be added to the pension of pensioners and will be given by the end of October.
How will dearness allowance increase?
Dearness Allowance (DA) of central employees is determined by the Consumer Price Index of Industrial Workers (AICPI-IW). The formula for calculating dearness allowance is fixed. 7th CPC DA% = [{Average of AICPI-IW (Base Year 2001=100) for the last 12 months – 261.42}/261.42×100]
=[{382.32-261.42}/261.42×100]= 46.24. It is clear from the calculation that dearness allowance is to be increased by 4 percent. Dearness allowance of central government employees will increase to 46 percent from July 1, 2023. Its payment is possible in October.
Dearness allowance increased by 4.24%
The average of AICPI-IW for the last 12 months is 382.32. According to the formula, the total dearness allowance will be 46.24%. The current dearness allowance rate is 42%. In such a situation, from July 1, 2023, there will be an increase of 46.24%-42% = 4.24% in DA. Because dearness allowance is not paid in decimal, hence dearness allowance will be paid at 4 percent. Let us tell you, more than 1 crore employees and pensioners will benefit from this. But, only those who are under the Center and come in the pay band of the 7th Pay Commission.
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
