7th Pay Commission Update: More Salary Hike For Employees Likely In July As DA To Be Hiked 4%; New Formula

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7th Pay Commission Update: More Salary Hike For Employees Likely In July As DA To Be Hiked 4%; New Formula


The DA is supplied to staff and pensioners to compensate them for rising costs.

DA and DR are revised twice a 12 months — January and July; experiences say the DA hike in July is more likely to be based mostly on a revised method for calculation

7th Pay Commission Update: After a 4 per cent hike in DA for central authorities staff just lately efficient January 1, the federal government is more likely to increase the dearness allowance by one other 4 per cent in July this 12 months, in response to media experiences. DA and DR are revised twice a 12 months — January and July. The experiences additionally stated that the DA hike is more likely to be based mostly on a revised method for calculation.

Dearness allowance is given to authorities staff, whereas the dearness reduction is for pensioners.

According to the media experiences, the labour ministry revised the DA calculation method and adjusted the bottom 12 months of dearness allowance in 2016 and launched a brand new sequence of Wage Rate Index (WRI-Wage Rate Index). The ministry stated the brand new sequence of WRI with base 12 months 2016=100 changed the previous sequence of the bottom 12 months 1963-65.

How DA is Calculated Currently?

The central authorities revises the DA and DR for workers based mostly on a method. Following is the method:

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 staff: Dearness Allowance Percentage = ((Average of All-India Consumer Price Index (Base Year 2001=100) for the previous 3 months -126.33)/126.33)x100.

How Much Has Salary Increased After Recent 4% DA Hike?

The 4 per cent hike in DA and dearness reduction (DR) will improve the wage of 47.58 lakh central authorities staff and pension quantity for 69.76 lakh pensioners. The DA is given to staff based mostly on the essential pay of the staff.

For instance, if a authorities worker’s month-to-month take-home wage is about Rs 42,000 and the Basic Pay is round Rs 25,500; then he/ she should be getting Rs 9,690 because the dearness allowance. Now, this DA quantity will improve to Rs 10,710 after the newest 4 per cent DA hike. So, there might be a rise of Rs 1,020 in month-to-month take-home wage on this case.

The earlier revision in DA was executed on September 28, 2022, which was efficient from July 1, 2022. The Centre had elevated DA by 4 share factors to 38 per cent based mostly on the share improve within the 12-month common of the All India Consumer Price Index for the interval ending June 2022.

The DA is supplied to staff and pensioners to compensate them for rising costs.

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