7th Pay Commission: The 4% DA hike, which can profit one crore central authorities workers and pensioners, will turn into efficient from July 1, 2023.
7th Pay Commission: After the 4 per cent hike, the worker whose fundamental wage is Rs 15,000 will get Rs 6,900 monthly as DA now, which is Rs 600 larger as in contrast with Rs 6,300 earlier
7th Pay Commission: In a a lot-awaited bonanza for central authorities workers, the Union Cabinet on Wednesday authorized a 4 per cent hike in dearness allowance to 46 per cent of the essential pay. The 4% DA hike, which can profit over one crore central authorities workers and pensioners, will turn into efficient from July 1, 2023.
Briefing concerning the Cabinet selections as we speak, Information and Broadcasting Minister Anurag Thakur mentioned, “Dearness allowance for central government employees and dearness relief for pensioners have been increased by 4 per cent, effective July 1, this year. The DA has now increased to 46 per cent, from 42 per cent earlier.”
The authorities has additionally elevated dearness reduction (DR) by 4 per cent. DA is given to authorities workers, whereas DR is given to pensioners. DA and DR are hiked twice a 12 months — January and July.
“This (4% DA hike) increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission,” the finance ministry mentioned in a press release.
It additionally mentioned the mixed affect on the exchequer on account of each DA and DR could be Rs 12,857 crore each year. This will profit about 48.67 lakh Central Government workers and 67.95 lakh pensioners.
How Much Salary Hike Will Central Govt Employees Get?
Since the federal government has introduced a 4 per cent DA hike, how a lot is the wage hike doubtless for central authorities workers? If anyone’s wage is Rs 50,000 monthly and has Rs 15,000 as the essential pay. He or she at present will get Rs 6,300, which is 42 per cent of the essential pay. However, after the 4 per cent hike, the worker will get Rs 6,900 monthly, which is Rs 600 larger as in contrast with Rs 6,300 earlier. So, if somebody has a Rs 50,000 wage a month with Rs 15,000 as the essential pay, his or her wage will rise by Rs 600 monthly.
In the earlier DA hike in March 2023, the federal government had elevated the dearness allowance and dearness reduction by 4 per cent to 42 per cent.
Recently, numerous state governments, together with Madhya Pradesh, Odisha, Karnataka, Jharkhand and Himachal Pradesh, elevated dearness allowance for his or her state authorities workers.
How Does Govt Calculate DA Hike?
The DA and DR hike is determined primarily based on the share enhance in 12 month-to-month common of the All India Consumer Price Index (AICPI) for the interval ending June 2022. Though the central authorities revises the allowances on January 1 and July 1 yearly, the choice is mostly introduced in March and September.
In 2006, the central authorities had revised the method to calculate the DA and DR for central authorities workers and pensioners.
Dearness Allowance Percentage = ((Average of All-India Consumer Price Index (Base Year 2001=100) for the previous 12 months -115.76)/115.76)x100.
For Central public sector workers: Dearness Allowance Percentage = ((Average of All-India Consumer Price Index (Base Year 2001=100) for the previous 3 months -126.33)/126.33)x100.
