7th Pay Commission: Govt Employees to Get Huge DA Hike After Holi; Check Salary Calculation

An announcement about the increase in Dearness Allowance (DA) and Dearness Relief (DR) is expected shortly from the Narendra Modi-led government. According to reports, following Holi, which falls on March 8, the Center intends to change the DA for thousands of employees from the present 38% to 42% and the fitment factor.

According to the 6th Central Pay Commission, an employee who earns Rs 15,500 in 4200 Grade Pay would multiply that amount by 2.57 to get a total compensation of Rs 39, 835 if the reports are accurate. The usual fitting factor for the unversed is now 2.57%.

The employees' current pay rate, 2.57%, was recommended by the 7th CPC after the 6th CPC authorized a fitment ratio of 1.86%. Nevertheless, the fitting factor is currently being demanded by the workforce to be increased to 3.68.

Their minimum pay will rise from Rs 18,000 to Rs 26,000 once their request is approved by the center. According to the Economic Times, the higher compensation would take effect on January 23.

Importantly, government employees' dearness allowance (DA) and dearness relief (DR) are updated twice a year, on January 1 and July 1.

Salary Calculation After DA Hike:

The minimum wage for government employees would probably increase if the national government votes to raise the fitment factor to a 3.68 percent hike. By choosing to increase the fitment factor by 3.68 percent, the basic income would increase from Rs 18,000 to Rs 26,000 per year.

Moreover, media reports indicate that the DA increase will be declared in March 2023. In September of the previous year, the central government raised the DA by 4%, bringing it from 34% to 38%. A decision on the proposed DA raise of 3 to 5 percent, which has been the subject of several media stories, won't be made until the AICPI figures have been made public.