7th Pay Commission Before Diwali Hike DA By 3 Percent

Update on Dearness Allowance Hike and Salary Increase for Central Employees as per the 7th Pay Commission, including the Exhaustion of Dearness Allowance.

7th Pay Commission

As discussions continue within the 7th Pay Commission, central government employees eagerly await an increase in dearness allowance. Currently, employees receive a dearness allowance of 42%, and if a four percentage point increase occurs, it will become 46%.

However, instead of a four percentage point increase, there is a possibility of a three percentage point increase, which would result in a dearness allowance of 45% from the current 42%.

Additionally, there’s potential for a three percentage point rise in dearness relief (DR) for pensioners. If the consideration of increasing the dearness allowance is taken into account, then based on the government’s announcement of consumer price index for industrial workers every month, it is determined.

Until when can the dearness allowance increase happen?

Generally, the dearness allowance for central government employees is usually increased every six months. If we consider this year, the second increase is expected to be in October, and typically, this increase is applied from July 1, 2023. Hence, the dearness allowance for July, August, and September will be due.

7th Pay Commission: In other words, if the central government follows its previous practice, along with the salary increase in October, there is a possibility of providing this accumulated dearness allowance. The crucial point is that the calculation of the dearness allowance is based on a part of the basic salary of the central government employees. Therefore, when the dearness allowance increases, the employees’ salaries also increase.

The increase in cost of living allowance impacts the salary increase for employees:
To illustrate, if we consider that each month an employee receives a base salary, also known as basic salary, of 36,500 rupees, and with the 42% increase on this basic salary, they would receive 15,330 rupees additionally. If the cost of living allowance is increased by three percentage points starting from July 2023, employees will receive an additional 1,095 rupees in their cost of living allowance. Consequently
The total cost of living allowance would be 16,425 rupees. If this increase in the cost of living allowance is implemented from July 2023, it also presents the possibility of the employees receiving an arrear for three months.

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