7th pay commission DA Hike News Today: 4 percent increase in dearness allowance has been approved. The cabinet approved it on Wednesday. Now central employees will get dearness allowance at the rate of 46 percent. It has been implemented from 1 July 2023.
7th pay commission DA Hike News Today: The wait of central employees is finally over. The increase in his dearness allowance was approved. This is a great gift for employees during festivals. 4 percent increase in dearness allowance has been approved. The Cabinet (Cabinet Meeting on DA Hike) approved it on Wednesday. Now central employees will get dearness allowance (DA Hike Central Government Employees) at the rate of 46 percent. It has been implemented from 1 July 2023. More than 48 lakh central employees and about 65 lakh pensioners will benefit from this.
Employees and pensioners will now be paid new rates of dearness allowance. The new rates will be given along with the October salary. This will also include the money of July, August and September. Dearness allowance has been increased for the second half of the year. With a jump of 4 percent, dearness allowance has increased from 42 percent to 46 percent. The formal announcement will be made in the press conference at 3 pm.
Which employees got the benefit?
Employees in the pay band of the 7th Pay Commission have got the benefit of the new rates of dearness allowance. Employees will also be given arrears of dearness allowance (DA arrears) for July, August and September. The arrears will be of the difference which is the increased rate between 42 per cent and 46 per cent.
Diwali gift before Dussehra
The government has given Diwali gift to the employees before Dussehra. Just before Dussehra, the cabinet approved and made it clear that they will get extra money in their October salary. According to the Cabinet, due to the increased rates of dearness allowance, there will be a financial burden of about Rs 17000 crore on the government treasury.
‘Lakshmi’ is kind to the employees
When Dearness Allowance (DA Hike Central Government Employees) is announced for the employees in October, it is clear that it will also be paid by the end of October. Meaning, November, especially the festival of Diwali, is going to be good for the employees. Apart from the benefit of dearness allowance, adhoc bonus will also be paid to the employees and Diwali annual bonus will also be paid to the railway employees. In such a situation, employees will have a good amount of money to spend on Diwali. Apart from this, arrears of three months will also be given.
Pensioners will also enjoy
Apart from dearness allowance of central employees, tremendous benefit has also been seen in dearness relief of pensioners. For them also DR has been increased at the same rate by 4 percent. This will also be applicable from July 1, 2023. Pensioners will be paid the new rates of DR along with pension. Dearness relief for pensioners has also reached 46 percent.
How was 4 percent dearness allowance calculated?
Dearness Allowance (DA) of central employees is determined by the Consumer Price Index of Industrial Workers (AICPI-IW). The formula for calculating dearness allowance is fixed. 7th CPC DA% = [{Average of AICPI-IW (Base Year 2001=100) for the last 12 months – 261.42}/261.42×100]
=[{382.32-261.42}/261.42×100]= 46.24. It is clear from the calculation that dearness allowance has increased by 4 percent.
Dearness allowance will be 46%
According to 7th Pay Commission, the average of AICPI-IW for the last 12 months was 382.32. According to the formula, the total dearness allowance became 46.24%. DA increased by 46.24%-42% = 4.24% from July 1, 2023. But, the government does not pay in decimals, hence dearness allowance has increased by 4 percent.
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