7th Pay Commission: Increase in dearness allowance fixed, government employees’ salary will increase again

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7th Pay Commission News: Both Dearness Allowance (DA) for Central Government employees and Dearness Relief (DR) for Central Government pensioners were increased by 4% recently.

This increased DA and DR was deemed to be applicable from 1 January 2023. After the hike since January, most of the government employees are now waiting for the DA hike which is due in July. The employees are hopeful that the government can once again increase the dearness allowance by 4 percent.

The dearness allowance of the employees can be increased by this much.

The Labor Bureau, a part of the Ministry of Labor and Employment, fixes the dearness allowance rate for employees based on the all-India CPI-IW data. The current DA and DR ratio for employees and pensioners is 42%. According to the February 2023 data of AICPI-IW, the inflation rate may increase from 45 to 46 percent in the next revision. However, the estimated DA and DR for July 2023 will be decided only after the release of AICPI-IW data for March, April, May and June 2023.

This is how dearness allowance is calculated

Employees get dearness allowance in addition to their basic pay. It is calculated using the pay matrix of the 7th Pay Commission.

DA of employees will increase by this much

At one time, the dearness allowance received by the employees was 34 percent, then the government had increased the DA by 4 percent for the first time. After that the DA received by the employees was increased to 38 percent and now once again the government has increased the DA of the employees by 4 percent to 42 percent. Now it will increase by 4 percent to 46 percent in July. In the report released by the All India Consumer Price Index (AICPI), it has been said that the Modi government can once again increase the dearness allowance by 4 percent in the month of July.

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