7th pay commission hike: Central employees should be ready for great news. The countdown has started. The increase in dearness allowance can be approved by the government any time in the coming days. As soon as this is announced, there will be a huge jump in the salaries of the employees.
7th pay commission hike: Countdown has started. The increase in dearness allowance is just a few days away. Central employees will get great news. The next 8-10 are going to be very important. Festivals have started, so this announcement will bring more joy to the employees. The Union Cabinet may soon approve the increase in dearness allowance. Let us tell you, there may be a total increase of 4% in the dearness allowance of the employees. At present the rate of dearness allowance is 42 percent. If 4 percent is approved then dearness allowance will reach 46 percent.
When will you get the benefit of DA Hike?
Central employees will get the benefit of increased dearness allowance from July 1, 2023. However, if it is paid along with the October salary, then the money of July, August and September will also be deposited in their account as arrears. In total they will get 3 months arrears.
When can dearness allowance be approved?
If we look at the trend of the last four years, except for the year 2020, the government approves it in the end of September or October. Even this year, dearness allowance is still awaiting approval. In this respect, the next two weeks are going to be very important. Because, next week is Dussehra and it was expected that DA Hike would be approved before Dussehra. But, sources in Zee Business say that it can be approved in the cabinet meeting to be held right after Dussehra. After Dussehra, the cabinet meeting will be held on Wednesday i.e. 25th October. However, no such confirmation has been made by the government yet.
You will get benefit in October salary
Under the 7th Pay Commission, DA-DR can be paid to central employees and pensioners in the salary pay band along with the October salary. Employees will be given increased allowance by adding it to their salary. Apart from this, they will also be paid 3 months arrears. At the same time, pensioners will also get 4 percent additional dearness relief in pension.
How much 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% in AICPI
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.
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