7th Pay Commission: The 4% DA hike, which is able to profit one crore central authorities staff and pensioners, will develop into efficient from July 1, 2023.
7th Pay Commission: The newest 4% DA hike will profit about 48.67 lakh Central Government staff and 67.95 lakh pensioners
7th Pay Commission: In a a lot-awaited choice, the central authorities has hiked dearness allowance (DA) by 4 per cent for its staff. The 4% DA hike, efficient from July 1, 2023, will now take the DA to 46 per cent. Here’s all it’s essential learn about it.
What Is Dearness Allowance and Dearness Relief?
Dearness allowance is an quantity given to staff as a part of their wage to make up for the worth rise within the economic system. Whenever inflation will increase, it reduces the worth of a forex which, in flip, adversely impacts the de facto earnings of the staff by hitting their buying energy.
Dearness aid is an quantity given to pensioners. Whenever DR will increase, it raises the month-to-month pension of pensioners.
DA is given as a share of the fundamental pay, whereas DR is given as a share of the pension quantity. Though the central authorities revises the allowances with impact from January 1 and July 1 yearly, the choice is mostly introduced close to March and September.
How DA Hike Is Calculated Under 7th Pay Commission
The central authorities had in 2006 revised the formulation to calculate the DA and DR for central authorities staff and pensioners. The authorities now offers DA hike as per the formulation for DA calculation 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.
DA is calculated as a share of the fundamental wage.
Formula For central authorities staff:
Dearness Allowance per cent = ((Average of AICPI (Base Year 2001=100) for the previous 12 months -115.76)/115.76) *100
AICPI stands for All India Consumer Price Index.
Formula For public sector (central authorities) staff:
Dearness Allowance per cent = ((Average of AICPI (Base Year 2016=100) for the previous 3 months -126.33)/126.33) *100
How Many Employees Will Get Benefitted From 4% Hike?
The DA hike will profit about 48.67 lakh Central Government staff and 67.95 lakh pensioners. The mixed affect on the exchequer on account of each DA and DR could be Rs 12,857 crore each year.
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 seemingly for central authorities staff? If any person’s wage is Rs 50,000 per thirty days and has Rs 15,000 as the fundamental pay. He or she at present will get Rs 6,300, which is 42 per cent of the fundamental pay. However, after the 4 per cent hike, the worker will get Rs 6,900 per thirty days, which is Rs 600 greater 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 fundamental pay, his or her wage will rise by Rs 600 per thirty days.
In the earlier DA hike in March 2023, the federal government had elevated the dearness allowance and dearness aid by 4 per cent to 42 per cent.
Recently, varied state governments, together with Madhya Pradesh, Odisha, Karnataka, Jharkhand and Himachal Pradesh, elevated dearness allowance for his or her state authorities staff.
DA Taxability
The dearness allowance or DA is a part of your wage and, therefore, the tax is levied as per your slab price.
