7th Pay Commission: Govt to Give Out Rs 6,000 Crore to Government Employees

7th Pay Commission Update: Karnataka's government is aiming to execute the seventh pay commission, and Chief Minister Besavaraj Bommai said on Friday that his administration has set aside Rs 6,000 crore for its implementation.

Providing specifics, the chief minister stated that the 7th Pay Commission report on salary revisions for state government employees will be provided by a committee led by former chief secretary Sudhakar Rao.

After the presentation of the State Budget for Fiscal Year 2023-24, the Chief Minister stated that any additional funds necessary for execution will be included in the supplementary budget.

He also stated that the 7th Pay Commission's recommendations will be implemented beginning in the fiscal year 2023-24.

"Whenever the committee publishes its interim or final findings, the state government will take swift action. "There will be no problems with implementation because the grants have been budgeted for," he stated.

When will Central Govt Employees Get a DA Hike?

The central government is expected to boost dearness allowance (DA) under the 7th Pay Commission by four percentage points to 42 percent from the current 38 percent for its over one crore workers and pensioners. If this is done, it will take effect on January 1, 2023. It is also expected that the Dearness Relief (DR) increase for central government pensioners would be announced soon

Dearness Allowance (DA) is a cost-of-living adjustment benefit provided by the government to public sector employees and retirees. Dearness relief (DR), on the other hand, is the same as allowance and is paid to central government retirees.

How is DA Hike Decided?

The dearness allowance for employees and retirees is calculated using the most recent Consumer Price Index for Industrial Workers (CPI-IW) published by the Labour Bureau each month. The Labour Bureau is a branch of the Ministry of Labour.

The CPI-IW for December 2022 was announced on January 31, 2023, according to the news agency PTI. There is a 4.23 percent increase in the dearness allowance. Nonetheless, the administration does not consider increasing DA beyond the decimal point.

As a result, DA is expected to be enhanced by four percentage points to 42 percent, according to All India Railwaymen Federation General Secretary Shiva Gopal Mishra, who was mentioned in the story.