7th Pay Commission: Government employees can get a big gift before the festival. It is being speculated that the Central Government may possibly announce an increase in the daily allowance of its employees between Navratri and Diwali.
Once announced, the DA increase will be effective from July 1, 2023. However, it is believed that DA may increase by 3 percent but there are some reports that the amount may also increase.
Citing media reports, an increase of 4 per cent is estimated for central government personnel under the formula used to calculate DA based on the latest Consumer Price Index for Industrial Workers (CPI-IW). After this increase, dearness allowance will increase to 46 percent.
Government employees get DA, while retired people get DR. DA and DR are increased every year in January and July. More than one crore retired and employees of the central government currently get 42 percent dearness pay.
In the most recent pay hike in March 2023, DA was increased by 4 percent to 42 percent. According to several reports, the next DA hike is likely to be 4 percent considering the current inflation rate.
These states increased dearness allowance
Recently, several state governments increased dearness allowance for their state government employees, including Madhya Pradesh, Odisha, Karnataka, Jharkhand and Himachal Pradesh.
By the end of this month or in the first part of October, it is possible that the government may reveal the new DA/DR rate, which will be effective from July 1, 2023. On September 28 last year, the government had announced that the DA increase will be effective from July 1, 2022.
How much will the salary increase?
For example, suppose a central government employee gets a salary of Rs 30,000 per month. That employee is eligible for dearness allowance of Rs 12,600 at the current rate of 42 percent. However, if DA increases to 46 percent, he will get Rs 13,800 as dearness allowance, which will increase his monthly salary by Rs 1200.
