7th Pay Commission: Centre Likely to Hike DA By 4% in July Again, Check Latest News Update Here
Speculations are rife that the Centre may announce another Dearness Allowance (DA) hike in July on 7th pay commission recommendations. there are strong indications that another 4 percent increase may be on the cards for July 2023 hike.
Delhi, April 9: Days after Union Minister Anurag Thakur announced a 4% hike in dearness allowance for over 50 lakh Central government employees and pensioners, speculations are rife that the Centre may announce another Dearness Allowance (DA) hike in July on 7th pay commission recommendations. there are strong indications that another 4 percent increase may be on the cards for July 2023 hike.
According to a report in DNAIndia, the DA hike is likely to be based on a revised formula for calculation. Dearness allowance is given to government employees, while the dearness relief is for pensioners.
According to latest reports and data from the All-India Consumer Price Index (AICPI) for the last four months, it is expected that the Union Cabinet could grant another 4 percent DA hike for July 2023 later in the year. There will be more clarity whether central employees will get a 3 or 4 percent hike after the upcoming AICPI figures. 7th Pay Commission: Dearness Allowance Increased By 4%, Know How to Calculate DA Arrears For January to March.
Certain reports have stated that Centre may be considering a new formula for Dearness Allowance increase calculation. 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 calculation of salaries of central employees. 7th Pay Commission: DA Hike to Be Announced in July With New Formula? Check Latest News Update Here.
The 4 per cent 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. The DA is given to employees based on the basic pay of the employees.
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 he/ she must be getting Rs 9,690 as the dearness allowance. Now, this DA amount will increase to Rs 10,710 after the latest 4 per cent 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 09, 2023 02:03 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).