7th Pay Commission DA Hike: With 4 percent increase, dearness allowance will increase from 42 percent to 46 percent. This decision will benefit 48.67 lakh central government employees and 67.95 lakh pensioners.
7th Pay Commission DA Hike: The Central Government has increased the Dearness Allowance for central employees and Dearness Relief for pensioners by 4%. Union Minister Anurag Thakur gave this information while announcing the decisions taken in the cabinet meeting. It was also told that DA increase will be implemented from July 1, 2023.
With this 4 percent increase, dearness allowance will increase from 42 percent to 46 percent. This decision will benefit 48.67 lakh central government employees and 67.95 lakh pensioners.
Dearness allowance for employees and pensioners is decided every month on the basis of the latest Consumer Price Index for Industrial Workers (CPI-IW) released by the Labor Bureau. Information and Broadcasting Minister Anurag Thakur, while talking to the media after the Union Cabinet meeting, said that the release of additional installment of dearness allowance and dearness relief will be effective from July 01, 2023.
This increase is as per the approved formula based on the recommendations of the 7th Central Pay Commission.
#WATCH | Dearness Allowance for Central govt employees and Dearness Relief for pensioners increased by 4%. The DA hike will be implemented from 1, July 2023: Union Minister Anurag Thakur on Cabinet decisions pic.twitter.com/0FrVBguHzr
— ANI (@ANI) October 18, 2023
The combined impact on the exchequer due to increase in dearness allowance and dearness relief will be Rs 12,857 crore per year. This will benefit about 48.67 lakh central government employees and 67.95 lakh pensioners.
How much will the salary increase?
The annual DA increase on a basic salary of Rs 18,000 will be Rs 8640, while the annual DA increase on a basic salary of Rs 56,900 will be Rs 27,312.
Calculation on minimum basic salary
Basic salary – Rs 18,000
Current DA 42 percent – Increase in DA by Rs 7,560 per month
New DA 46 percent – Increase in DA by Rs 8,280 per month
DA increase – 8,280- 7,560 = Rs 720 per month
Annual salary increase Rs 720 X 12 = Rs 8,640
Calculation on maximum basic pay
Basic salary – Rs 56900
Current DA 42 percent – Rs 23,898 per month
New DA 46% – Increase in DA by Rs 26,174 per month
DA increase – Rs 26,174 – Rs 23,898 = Rs 2,276 per month
Annual increase in DA – Rs 2,276 X 12 = Rs 27,312
