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7th Pay Commission: After cylinder for Rs 600, great news for central employees, announcement will be made on this day

7th Pay Commission DA Hike From July: According to media reports, this time the Central Cabinet can make an announcement regarding DA and DR of employees during Navratri. If we look at the last few years, the Central Cabinet gives good news on DA and DR during Navratri.

7th Pay Commission DA Hike: After Rakshabandhan, the Modi government at the Center has announced an additional subsidy of Rs 100 on LPG gas cylinder. This additional subsidy of Rs 100 will be given by the government to the beneficiaries of Ujjwala scheme. Now after this, central employees and pensioners are waiting for DA/DR increase. More than one crore employees and pensioners will get relief from the DA increase in the second half of the year i.e. from July 1.

Announcement any day after October 15

According to media reports, this time the Central Cabinet can make an announcement regarding DA and DR of employees during Navratri. If we look at the last few years, the Central Cabinet gives good news on DA and DR during Navratri. In such a situation, it is expected that the government can announce good news for government employees any day after October 15. On the other hand, a notification is also to be issued by the Election Commission regarding the assembly elections of five states.

DA hike will happen before the notification is issued!

If the notification related to the elections of five states is issued, then the announcement of DA hike by the government will be no less than a challenge. In view of this, the government is trying to announce DA before the notification on elections is issued. Let us tell you that the government makes announcements regarding DA twice every year. The first announcement is made around March, and the employees are paid from January 1. The second announcement regarding DA is made in the month of October, the employees get its benefits from July 1.

The long-awaited increase in Dearness Allowance (DA) and Dearness Relief (DR) for over a crore central government employees and pensioners seems poised to arrive. A recent update sheds light on this impending hike, and if all goes according to plan, the central government may announce the raise in dearness allowance for its employees and pensioners between Navratri and Diwali. In 2023, Navratri concludes on October 24th, with Diwali following on November 12th. This timing suggests that the central government may make the announcement during the last week of October. Should this occur, central employees can expect their increased salaries for October, along with arrears for the months of July, August, and September.

Biannual DA-DR Hikes

The 7th Pay Commission stipulates that the central government should raise Dearness Allowance and Dearness Relief twice a year, with these increases taking effect on January 1st and July 1st. Consequently, the forthcoming DA hike, when announced, will be applicable from July 1, 2023. Typically, the government announces the January DA increase before Holi and the DA hikes for March and July between Durga Puja and Diwali.

Hike Frequency

The Central Government increases DA and DR every six months, aligning these hikes with inflation data released by the Labor Ministry. This strategy aims to safeguard central employees and pensioners from the adverse effects of rising inflation, ensuring their real income retains its value.

Expected DA Increase

Based on data from the All India Consumer Price Index (AICPI) released by the Labor Ministry for the January to June period, experts anticipate a four percent increase in dearness allowance this time. Notably, inflation has seen consecutive four percent increases for the last two periods. Given this trend, it is highly probable that the DA will increase by four percent once again.

Potential DA Raise

If the anticipated DA hike materializes, central employees will see their dearness allowance increase from the existing 42 percent to 46 percent. This adjustment promises a substantial boost to their salaries and pensions. It is crucial to note that the calculation of dearness allowance relies on the basic salary of the employees.

Calculating Dearness Allowance

The Central Government revised the formula for calculating DA and DR for its employees and pensioners in 2006. This formula determines dearness allowance as follows: DA percentage = [(average of AICPI for the last 12 months – 115.76) / 115.76] x 100. Additionally, for central government employees, the dearness allowance calculation follows this equation: DA percentage = [(average of All India Consumer Price Index for the last 3 months – 126.33) / 126.33] x 100.

A Boon for Millions

As of now, there is no official statement from the Central Government regarding the increase in dearness allowance. Nevertheless, expectations are high that the government will deliver a significant gift to its employees and pensioners during the festive season. If this unfolds as anticipated, approximately 47.58 lakh central employees and 69.76 lakh pensioners across the country stand to gain directly.

The central government’s potential announcement of a DA hike between Navratri and Diwali could bring substantial relief and joy to its employees and pensioners. As the festive season approaches, the anticipation builds, and millions await news of a positive change in their financial circumstances.

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