7th Pay Commission Latest update: The end of the month of September could bring in the much-awaited good news for Central government employees. As per media reports, the government’s big announcement on Dearness Allowance (DA) and Dearness Relief (DR Hike) could be made during auspicious occassion of the Navratris.
This month, the wait for the increase in Dearness Allowance (DA Hike) and Dearness Relief (DR Hike) for Central Government Employees and Pensioners respectively will end. On the occasion of Navratri, government employees can get increase in DA (Dearness Allowance) and DR (Dearness Relief).channel
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Even though no official confirmation has come from the Government however several media reports have claimed that the Central Government is expected to announce the revised Dearness Allowance (DA) and Dearness Relief (DA) rates for Central Government Employees and Pensioners. The DA/DR hike announcement may be made in the last week of September.
7th Pay commission: Cabinet Meeting On 28 September
Significantly, this year Navratri is starting from 26th September. On the third day of Navratri, on 28 September 2022, a cabinet meeting is also going to be held under the chairmanship of Prime Minister Modi. In this meeting, the government can give a green signal to increase the dearness allowance of central employees.
7th Pay Commission: Media Reports
If latest media reports are to be believed, Dearness Allowance of the employees could by hiked by 4 percent. This means the total DA could reach upo 38 percent. The All-India CPI-IW for the month of June has hinted at a hike in DA this month. Along with the Dearness allowance hike, employees may also get arrears for the months of July and August.
7th Pay Commission: DA hike to be increased second time in this year?
The Dearness Allowance of central government employees is revised twice a year. The first is given from January to June, while the second comes from July to December.
Dearness Allowance increases on the basis of AICPI index
After February, there is a continuous jump in the AICPI index. The figure of the AICPI index was 125.1 in January 2022, which came down to 125 in February. Whereas in March it reached 126 points. After this, in April it rose to the level of 127.7. In May it reached 129 points, while in June it reached 129.2 points. This has raised the expectation that the DA of central employees may increase by up to 4 percent.
7th Pay Commission: Dearness Allowance/DR Hike Calculation
Here’s a look at how the salary/pension will increase assuming DA/DR rates go up by 4% to 38%:
- If the Basic Salary/Pension is Rs 25,000, the DA/DR at 38% rate will be Rs 9500. At 34% rate, DA/DR amount is Rs 8500. This means salary will increase by Rs 9500-Rs 8500 = Rs 1000.
- If the Basic Salary/Pension is Rs 35,000, the DA/DR at 38% rate will be Rs 13,300. At 34% rate, DA/DR amount is Rs 11,900. This means salary will increase by Rs 13,300-Rs 11,000 = Rs 1400.
- If the Basic Salary/Pension is Rs 45,000, the DA/DR at 38% rate will be Rs 17,100. At 34% rate, DA/DR amount is Rs 15,300. This means salary will increase by Rs 17,100-Rs 15,300 = Rs 1800.
- If the Basic Salary/Pension is Rs 55,000, the DA/DR at 38% rate will be Rs 20,900. At 34% rate, DA/DR amount is Rs 18,700. This means salary will increase by Rs 20,900-Rs 18,700 = Rs 2200.
- If the Basic Salary/Pension is Rs 65,000, the DA/DR at 38% rate will be Rs 24,700. At 34% rate, DA/DR amount is Rs 22,100. This means salary will increase by Rs 24,700-Rs 22,100 = Rs 2600.
Calculation on maximum basic salary
- Basic salary of the employee Rs 56,900
- New Dearness Allowance (38%) Rs 21,622/month
- Dearness Allowance so far (34%) Rs 19,346/month
- By how much dearness allowance increased 21,622-19,346 = Rs 2260/month
- Increase in annual salary 2260 X12 = Rs 27,120