7th Pay Commission: DA Could be Hiked by Republic Day; Salary Increment Calculation Inside

Before Republic Day 2023, the Central Government employees who have been waiting for a dearness allowance (DA) raise might get a good news. The recently announced AICPI index has provided some encouraging news. The Narendra Modi administration may raise DA by an additional 4% by Republic Day on 26^th January.

The DA is increased twice a year by the government. The dates of this DA increase are January and July. The Central Government employees have been anticipating an increase in their dearness allowance since the new year began.

According to data, the central government may raise the dearness allowance by 4% or 3%. This requires an increase of 0.4 points in the AICPI index in November and December.

The dearness allowance will grow to 42 percent if the government raises DA by 4%. The central government will increase DA by 4% in July 2022.

According to the media reports, DA and DR increases will benefit 68 lakh pensioners and 48 lakh central government employees.

The following calculation shows how a level-3 employee's income would be affected if the DA was raised to 42 percent.

The employee’s base pay is Rs. 56900.

Monthly New Dearness Allowance of Rs. 23898 (42%)

Dearness allowance to date (38%): Rs. 21622 per month

The rise in dearness allowance is 23898-21622 or Rs. 2276 per month.

Salary increase: 2276 X 12 = Rs 27312

House Rent Allowance Rule Update:

The House Rent Allowance (HRA) regulations for central government employees have been amended by the Department of Expenditure (DoE), which is part of the Ministry of Finance. The revised regulations state that a govt employee may not be entitled to HRA in certain circumstances.

The circumstances are:

(1) If the employee resides in housing provided by the government with another official.

(2) If he or she lives in a home provided by any of the following: the federal, state, or local governments, autonomous public sector organizations, or semi-government organizations (municipality, port trust, nationalized banks, LIC, etc.).

(3) If a government employee's spouse has been given a home by any of the aforementioned organizations in the same station as the employee, and whether the employee resides there or pays rent separately.