7th Pay Commission: The government revises the dearness allowance of central employees twice a year. On March 24, dearness allowance was increased by 4 percent from 38 to 42 percent, the benefit of which is available from January 1, 2023.
Central employees’ Diwali may be even brighter this time. Actually, it is expected that Modi government can give a big gift to the employees by increasing the dearness allowance (DA Hike) even before the festival.
At present, central employees get DA at the rate of 42 percent and an increase of 3 percent can be announced. If this happens then DA will increase to 45 percent and there will be a huge increase in the salary of the employees.
Revision takes place twice a year
The central government revises the dearness allowance given to employees twice a year. The first amendment of this year i.e. DA Hike was made on March 24, 2023 and the benefit of increased dearness allowance is effective for employees and pensioners from January 1, 2023.
Under this, the DA given to central employees was increased by 4 percent from 38 to 42 percent. This time also the employees are demanding an increase of four percent, but if media reports are to be believed, the government is expected to increase it by up to 3 percent. If this three percent increase is made in DA, then this benefit will be given to the employees from July 1, 2023.
DA hike is decided on this basis
Keeping in view the inflation rate, the government decides to increase the DA of the employees. The higher the inflation, the greater is the expectation of increase in DA of the employees. Generally, dearness allowance of central employees is revised every year on 1 January and 1 July.
If we talk about the standards for DA hike, it is decided on the basis of CPI-IW data. In July 2023, CPI-IW had increased by 3.3 points to 139.7. If compared with the same period a year ago, it is about 0.90 percent more. Earlier in the month of June it was 136.4 and in the month of May it was 134.7.
Benefits to more than one crore employee-pensioners
No official comment or announcement was made by the Central Government regarding the expectation of DA hike before Diwali. This estimate is being expressed in view of the demands of the employees in various reports.
However, if the government takes a decision in the interest of the employees on the basis of inflation rate, then about one crore employees and pensioners of the country will benefit from it. These include 47.58 lakh central employees and about 69.76 lakh pensioners.
Salary will increase by this much
Now it is expected that the employees may get the gift of 3 percent DA hike and the dearness allowance may increase to 45 percent. So according to this, if we look at the calculation of increase in salary, then if the basic pay of an employee is Rs 18,000 and he currently gets dearness allowance at the rate of 42 percent, then it becomes Rs 7,560.
If it increases to 45 percent then the amount will increase to Rs 8,100. That means the salary of the employees will directly increase by Rs 540. Now if we look at the maximum basic pay of the employee at Rs 56,900, then as of now the DA on it is Rs 23,898, whereas after the three percent increase, it will become Rs 25,605.
