Mumbai, April 28: The Central Government recently increased the Dearness Allowance (DA) and Dearness Relief (DR) by 4% under the 7th Pay Commission. The revised DA/DR rate will be applicable from January 1, 2023. Meanwhile, the employees are looking forward to the next DA hike effective from July 2023 on the recommendations of the 7th pay commission. The government decides on the Dearness Allowance rate as per the All-India CPI-IW data released by the Labour Bureau under the Ministry of Labour and Employment.

It is expected that the Union Cabinet could grant another 3% DA hike for July 2023 later in the year. There will be more clarity on whether central employees will get a 3 or 4% hike after the upcoming AICPI figures, reported Financial Express, citing the latest reports and data from the All-India Consumer Price Index (AICPI) for the last four months. 7th Pay Commission News Today: Another DA Hike on Cards? Government Employees May Soon Get Increased Dearness Allowance From July 2023.

Several media reports stated that the Centre might be considering a new formula to implement the Dearness Allowance hike. The government is planning to do away with the pay commission in the next few years and is set to introduce a new formula for the calculation of salaries of central government employees. 7th Pay Commission: Centre To Revise Fitment Factor Rate in 2024? New Pay Commission Implementation Likely in 2026; Check Latest News Update.

The DA is given to employees based on basic pay. The 4% hike in DA and dearness relief (DR) will increase the salary of 47.58 lakh central government employees and pension amount for 69.76 lakh pensioners. For example, if a government employee’s monthly take-home salary is about Rs 42,000 and the Basic Pay is around Rs 25,500; then they must be getting Rs 9,690 as the dearness allowance. This DA amount will increase to Rs 10,710 after the latest 4% DA hike. So, there will be an increase of Rs 1,020 in monthly take-home salary in this case.

(The above story first appeared on LatestLY on Apr 28, 2023 08:29 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).