Mumbai, March 17: The Narendra Modi-led government is expected to announce a decision regarding the dearness allowance hike anytime soon. As per reports, a Union Cabinet meeting to discuss the pending demands of government employees is likely to be held today. During the meeting, demands including DA hike and raising of the Fitment Factor rate will be discussed.

According to a report in Zee News, if the government does not take a decision regarding pending demands then the All India Consumer Price Index (AICPI) figures that the Labor Ministry releases at the end of the month will give a hint about the first DA hike of 2023. The Labour Ministry is expected to release the AICPI index for the month of February on March 31, 2023. 7th Pay Commission: Centre To Raise Fitment Factor After DA Hike? Check Latest News Updates Here.

Every year, the Centre raises DA twice. Last year, government employees under the 7th pay commission received a 4 per cent DA hike in September which took the dearness allowance to 38 per cent from 34 per cent. If reports are to be believed, central government employees under the 7th CPC could receive a 3 to 5 per cent DA hike. If approved, DA would boost the salary of govt employees.

The question is how much salary will increase if the Centre approved a 3 per cent DA hike and takes DA to 41 per cent? If the basic salary of an employee is Rs 18,000 then the DA at 38 per cent will be Rs 6,840 per month. With a 3 per cent hike, the DA at 41 per cent will become Rs 7,380 per month. So the monthly salary will rise by Rs 900 and annually by Rs 10,800. 7th Pay Commission Latest News Today: 4% DA Hike for Central Government Employees? Union Cabinet Likely To Decide Today.

Similarly, if the basic salary of an employee is Rs 56,900 then a 41 per cent DA would raise the monthly salary to Rs 23,329. At 38 per cent DA, the basic salary is Rs 21,622 per month. A 3 per cent DA hike would increase the monthly salary by Rs 1,707 and annually by Rs 20,484.

(The above story first appeared on LatestLY on Mar 17, 2023 03:27 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).