7th Pay commission hike: The wait for central employees is going to end soon. Their dearness allowance will increase. Along with dearness allowance, their arrears will also be approved.
However, it is not yet clear by how much the government will increase the dearness allowance. There has been discussion for the last few days 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 crossed 46 percent. This means that 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 an update for those Central Government employees who are taking 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. Comes into effect from January 1st. And the second one from July.
However, the government takes at least two months to announce them. 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 discussion is that it is likely to be announced in October 2023. No official announcement is 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 numbers. Dearness allowance is decided according to the calculation of inflation. If we look at the numbers 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 gained momentum that there will be an increase of 3 percent in the dearness allowance of central employees. 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 will have to wait to clear the confusion. 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|
How much will be the difference in salary?
According to the 7th Pay Commission, the basic salary of central employees starts from Rs 18000 to the maximum bracket of Rs 56900. Look at the calculation done on this basis below…
1. Basic salary of the employee Rs 18,000
2. New dearness allowance (46%) Rs 8280/month
3. Till now dearness allowance (42%) Rs 7560/month
4. How much dearness allowance increased 8280-7560= Rs 720/month
5. Increase in annual salary 720X12= Rs 8640