7th Pay Commission DA Hike: The month of September has brought good omen for the central government employees.
The month has started with new figures. The AICPI index numbers for July 2023 have arrived. There has been a good increase in this. But, even more important is the announcement of dearness allowance to be implemented from July 2023.
DA Hike for Central government employees: There is good news for central employees. Now the moment for which they were waiting is about to come. The government may soon announce their dearness allowance. The month of September has brought good omen for the central government employees.
The month has started with a new figure. The number of AICPI index for July 2023 has come. There has been a good growth in this. But, more importantly, dearness allowance, which will be implemented from July 2023, is going to be announced.
DA Hike: May be announced in September
The dearness allowance of central employees drawing salary under the 7th Pay Commission is set to increase. Dearness allowance has been fixed on the numbers of AICPI index from January 2023 to June 2023. However, its formal announcement has not been made yet. The central government may approve it soon. If sources are to be believed, this time it may be announced in September. It can be approved in the cabinet meeting on September 27.
How much will be the increase in dearness allowance?
There is to be a 4 percent increase in dearness allowance for central employees. Currently, he is getting 42 percent DA from January 2023. But, after an increase of 4 percent in it, it will become 46 percent. However, there were reports in between that there would be an increase of only 3 per cent in the dearness allowance. But, there was no concrete reason for this. According to the AICPI index, by June 2023, the total dearness allowance has reached 46.24 percent. But, the government does not count decimals. That’s why only 46 percent will be fixed.
How was the 6 month AICPI index?
| month | index data | dearness allowance |
| January 2023 | 132.8 points | 43.08 percent |
| February 2023 | 132.7 points | 43.79 percent |
| March 2023 | 133.3 points | 44.46 percent |
| April 2023 | 134.2 points | 45.06 percent |
| May 2023 | 134.7 points | 45.58 percent |
| June 2023 | 136.4 points | 46.24 percent |
How much will the salary increase?
According to the 7th Pay Commission, the basic salary of central employees starts from Rs 18000 to the maximum bracket of Rs 56900. On this basis, see the calculation given below…
1. Basic salary of the employee Rs 18,000
2. New dearness allowance (46%) Rs 8280/month
3. Till now dearness allowance (42%) Rs 7560/month
4. How much dearness allowance increased 8280-7560= Rs 720/month
5. Increase in annual salary 720X12= Rs 8640
Calculation on maximum basic salary Rs 56900
1. Basic salary of the employee Rs 56,900
2. New dearness allowance (46%) Rs 26,174/month
3. Dearness allowance till now (42%) Rs 23,898/month
4. By how much dearness allowance increased 26,174-23,898= Rs 2276/month
5. Increase in annual salary 2276X12 = Rs 27312
(Note: This calculation has been done on the basis of estimates. The final salary is formed after adding other allowances to it.)
PM Modi’s cabinet will decide
The Expenditure Department of the Finance Ministry will send the proposal with the financial burden arising from the increase in dearness allowance. This proposal will be placed in the cabinet. Any announcement on DA Hike will be made only after getting approval from the Cabinet.
In the current system, above one crore central employees and pensioners are getting 42 percent dearness allowance under the 7th Pay Commission. DA is given to central employees and DR to pensioners. Earlier in March 2023, dearness allowance was increased by 4 percent to 42 percent. This is applicable from January 1, 2023.
