7th Pay Commission DA Hike: After increasing Dearness Allowance (DA) for central government employees by 4% in January 2023, the government may again increase DA in July this year. The government reviews DA and Dearness Relief (DR) after 2 years. DA hikes according to inflation data
7th Pay Commission DA Hike: After increasing Dearness Allowance (DA) for central government employees by 4% in January 2023, the government may again increase DA in July this year. The government reviews DA and Dearness Relief (DR) after 2 years. DA hikes according to inflation data. The government increases the dearness allowance twice a year in January and July. The formula made by the government to increase DA has also been revised. The Labor Ministry has recently revised the DA formula for the calculation of Dearness Allowance (DA).
Government changed the base year
The Labor Ministry has released a new series of Wage Rate Index (WRI). This is called WRI-Wage Rate Index. According to the ministry, the base year of the new WRI series is 2016 = 100. Whereas, the base year in the old series was 1963–65.
Now DA is calculated in this way
The Central Government has revised a special formula for revision in Dearness Allowance (DA) and Dearness Relief (DR) for its employees. Now this is the new formula.
For calculation of DA percentage: ((Average of AICPI for last 12 months (Base year 2001=100) -115.76)/115.76)x100
The formula is slightly different for Central Public Sector employees: ((Average of AICPI for last 3 months (Base year 2001=100) -126.33)/126.33)x100
Increased take home salary
The salary and pension of about 47.58 lakh central government employees and 69.76 lakh pensioners will get a hike after the recent 4% hike in Dearness Allowance (DA) and Dearness Relief (DR). DA is based on the basic pay of the employee. An increase in DA increases your take home salary.
Salary will increase so much
For example, an employee with a monthly salary of around Rs 42,000 and a basic pay of around Rs 25,500 would have got Rs 9,690 as DA before the recent 4% hike. With the new DA hike, this money will increase to Rs 10,710. That is, the take home salary will increase by Rs 1,020.
