7th Pay Commission: What’s the Latest Update on DA Hike?

There is an important update for tens of thousands of central government employees who have been waiting for the DA hike. The dearness allowance will be increased by the government once again. Data from the AICPI index have revealed information on this. 

The Centre will make a big announcement for the Central government employees at the beginning of 2023.

Has the AICPI Index Increased?

The AICPI index numbers have seen a dramatic increase in the past. This time, there is a chance for the government to increase the dearness allowance by up to 4%. According to speculation, considering the current situation, the administration could also raise the DA by January.

How Much DA Hike is Anticipated?

Although the government might not announce it until March 2023, employees will start receiving greater allowances in January 2023. According to media reports, if the employee DA is increased by 4%, your dearness allowance will increase to 42%.

How Much Salary Will Be Hiked?

In particular, the minimum basic pay will increase by 720 rupees per month. In addition, these workers will receive an average monthly salary of Rs. 2276 if we talk about the maximum basic pay.

Has the Labor Ministry Released the Figures?

The labor ministry has made the AICPI statistics available. 131.2 has been this number since September. The AICPI index has risen by a total of 2.1% from June to September 2022. An increase of 1.1% was seen from August of the prior month.

What has the 7^th Pay Commission Recommended for House Building Advance (HBA)?

The following is the minimum amount of house building advance (HBA) that Central Government Employees are eligible to receive, per the recommendations of the 7th Pay Commission:

• 34 times the basic pay

• Rs 25 Lakh, or

• The anticipated price of the house, whichever is the least

The commission had suggested that the minimum number of years of continuous service needed to qualify for HBA be lowered to five.

Additionally, if both partners work for the government, HBA should be admissible to each separately. The commission also recommended allowing current employees who have already acquired home loans from banks and other financial institutions to switch to this scheme.