7th Pay Commission: 4% DA Hike for Govt Employees Coming Soon

Before Holi 2023, central government employees are probably going to get some good news. A 4% increase in the dearness allowance (DA) is anticipated. According to Zee Business, it may be approved at the Union cabinet meeting in the first week of March.

The central government employees' Dearness Allowance is currently 38%. The dearness allowance may rise by 4% in January 2023, according to reports. Accordingly, DA will rise from 38% to 42%. For central personnel starting in January 2023, the additional DA may be paid in the March salary.

The DA for government employees and the DR for retirees are both increased twice a year by the Centre. January comes first, followed by July. AICPI data indicates that the numbers are up to December 2022. As a result, it is almost guaranteed that DA will increase by 4%.

The CPI(IW) statistic will continue at 132.3 through December 2022. The data make it obvious that the dearness allowance will be hiked by more than 4%.

How Much Extra Salary Will Central Government Employees Get After the DA Hike?

The overall dearness allowance will be 42% after the 4% dearness allowance rise. On a basic wage of Rs 18,000, the total yearly dearness allowance will now be Rs 90,720. (annually). Every month, there would be an increase of Rs 720. Employees currently receive a monthly dearness allowance of Rs 6,840 at a 38% rate. The employees' new monthly salary would be Rs 7,560.

If the employee's basic pay is Rs. 18,000 per month, then:

18000 x 42 / 100 = 7560

Rs. 7560 per month for New Dearness Allowance (42%).

New Dearness Allowance of Rs. 90,720 per year (42%)

Dearness Present allowance (38%) Rs. 6840 per month

How much did the dearness allowance rise? 7560- 6840 = Rs. 720 per month

Annual salary increases to 720 x 12 = Rs. 8,640

Using the aforementioned formula with various basic salaries, one can determine the amount of their DA raise.

Updates on 18-Month DA Arrears:

Due to the central government's decision two years ago, during the Corona period, to restrict the dearness allowance/dearness relief that 48 lakh central employees and 64 lakh pensioners had been requesting for a long time, they owe DA from July 2020 to January 2021.

Media sources state that the DA arrears of Level-3 employees range from Rs 11,880 to Rs 37,554. For Levels 13 or 14, employee arrears may range from Rs 1,44,200 to Rs 2,15,900. The aforementioned range has not been verified. According to earlier reports, these figures might alter in the future as a consequence of discussions with the administration.