7th Pay Commission: Great news for 48 lakh central employees and 65 lakh pensioners. Actually, according to a recent update, let us tell you that there can be a good increase in the salary of the employees..it can be 46 percent with a jump of 4 percent.
DA Hike News: More than 48 lakh central employees and about 65 lakh pensioners will get gifts before Diwali. There will be a good increase in his salary. The matter is of dearness allowance, which is awaiting cabinet meeting. It has to be approved in the cabinet meeting itself. However, we will have to wait for some time for the announcement to be made on Wednesday.
When will dearness allowance be approved?
The 4 percent increase in dearness allowance is going to be approved this month. The allowance may be approved on Wednesday. The Union Cabinet of the Central Government can approve it. After this, new rates of dearness allowance will be paid to employees and pensioners. Dearness allowance is to be increased for the second half of the year. With a jump of 4 percent it could be 46 percent. At present 42 percent dearness allowance is being given.
Which employees will get the benefit?
Employees in the pay band of 7th Pay Commission will get the benefit of new dearness allowance. It will be implemented from July 1, 2023. The wait may be long, but in lieu of this, the employees will also be given DA arrears of dearness allowance for July, August and September. The arrears will be of the difference between the rate increasing from 42 percent. Let us tell you, last time dearness allowance was increased by 4 percent in March 2023.
You will get a gift for Dussehra-
If we look at the trend of the last three years, dearness allowance is announced at the end of October. The hope is the same this time too. It is believed that the government may approve dearness allowance before Dussehra. If sources are to be believed, it can be included in the cabinet just before Dussehra. According to the information received by Zee Business, dearness allowance can be kept in the agenda of the cabinet to be held on Wednesday i.e. October 18. However, no statement has been given by the government on this yet.
‘Lakshmi’ will shower on employees on Diwali-
After the announcement of dearness allowance for the employees in October, it will also be paid in the October salary. This means that the benefit of this increased dearness allowance will be available in November itself. Besides, annual bonus is also paid to railway employees under the Center on Diwali. This time also it has to be paid. In such a situation, employees will have a good amount of money to spend on Diwali. Apart from this, payment of three months arrears will also provide a lot of relief.
Gift to pensioners along with employees-
Apart from central employees, pensioners will get the benefit of increased dearness allowance. Like DA, DR given to pensioners also increases in the same order. Its benefit also applies only when dearness allowance is applicable for the employees. The difference is paid to pensioners by adding it to their pension. Dearness relief for pensioners will also increase by only 4 percent.
Formula for calculation of dearness allowance-
Dearness Allowance (DA) of central employees is determined by the Consumer Price Index of Industrial Workers (AICPI-IW). The formula for calculating dearness allowance is fixed. 7th CPC DA% = [{Average of AICPI-IW (Base Year 2001=100) for the last 12 months – 261.42}/261.42×100]
=[{382.32-261.42}/261.42×100]= 46.24. It is clear from the calculation that dearness allowance is to be increased by 4 percent.
Dearness allowance will be 46%-
According to 7th Pay Commission, the average of AICPI-IW for the last 12 months is 382.32. According to the formula, the total dearness allowance will be 46.24%. The current dearness allowance rate is 42%. In such a situation, from July 1, 2023, there will be an increase of 46.24%-42% = 4.24% in DA.
Because dearness allowance is not paid in decimal, hence dearness allowance will be paid at 4 percent. Let us tell you, more than 1 crore employees and pensioners will benefit from this. But, only those who are under the Center and come in the pay band of the 7th Pay Commission.
