DA Hike: The biggest update for central employees, approval will also be given on the arrears of dearness allowance, know when the money will come.
Increase in 7th Pay Commission: The wait of central employees is going to end soon. Their dearness allowance will increase. Along with dearness allowance, their livestock will also be sanctioned.
However, it is not yet clear by how much the government will increase the dearness allowance. For the last few days there has been discussion that there will be an increase of 3 percent in dearness allowance. At the same time, the index figures present a different picture. According to the index, dearness allowance has increased by more than 46 percent. That means there will be an increase of 4 percent. But, what is actually going to happen? and when?
When will you get the benefit of dearness allowance?
This will be updated for those Central Government employees who are drawing salary under the Seventh Pay Commission. This dearness allowance is to be approved for the second half of this year. Actually, dearness allowance is increased twice a year. Will be applicable from January 1. And the second from July.
However, it takes at least two months for the government to announce these. Dearness allowance for January was announced in March 2023. There was an increase of 4 percent. The current rate of dearness allowance is 42 percent. Now the buzz is that it is likely to be announced in October 2023. No official announcement has been made regarding the date. Therefore, the government can approve it in the cabinet by mid-October.
How much will the increase be?
Now the biggest question is how much will be the increase in dearness allowance? Because, DA is calculated on the basis of AICPI(IW) index number. Dearness allowance is decided according to the calculation of inflation. If we look at the data from January to June 2023, a 4 percent increase in dearness allowance is clearly visible.
According to the calculation of the index, it has reached 46.24 percent. But, the government does not pay in decimal. Therefore a rate below 0.50 will be applicable. It is clear from this that 46 percent dearness allowance can be approved. The current rate is 42 percent, so an increase of 4 percent is clearly visible.
Where did the 3 percent calculation come from?
In fact, Railway Federation General Secretary Shiv Gopal Mishra had said in a statement given to news agency PTI that it is certain that dearness allowance will be given at 3 percent, but we are demanding from the government to increase it by 4 percent. His statement that there will be an increase of 3 percent in the dearness allowance of central employees gained momentum. However, no concrete reason was given as to why the government would increase it by 3 percent or on what basis this figure of 3 percent was arrived at?
Arrears will also be available along with dearness allowance.
Now we have to wait for the confusion to be cleared. The reality will come out only when the government announces by what percentage the dearness allowance has increased. But, it is certain that central employees will get gifts around the festive season in October. Dearness allowance is to be implemented from July 1, 2023. If it is announced in October then the increased money will also come only by the end of October. In such a situation, employees will also get arrears of 3 months.
Understand the calculation of index here
month index data dearness allowance
January 2023 132.8 points 43.08 percent
February 2023 132.7 points 43.79 percent
March 2023 133.3 points 44.46 percent
April 2023 134.2 points 45.06 percent
May 2023 134.7 points 45.58 percent
June 2023 136.4 points 46.24 percent
What will be the difference in salary?
According to the 7th Pay Commission, the basic pay of central employees starts from Rs 18000 and goes up to a maximum of Rs 56900. See the calculations made on this basis below…
1. Basic salary of employee Rs 18,000
2. New Dearness Allowance (46%) Rs 8280 per month
3. Till now dearness allowance (42%) is Rs 7560 per month.
4. How much dearness allowance increased? 8280-7560= Rs 720/month
5. Annual salary increase 720X12= Rs 8640
