Under the 7th Pay Commission (7th Pay Commission Update), employees will be given 34 to 38 percent dearness allowance after 4 percent DA hike. This is likely to increase the salary of the employees.
The Dearness Allowance (DA Hike of Government Employees) of government employees has not increased since April. In such a situation, it is expected that government employees can get the gift of increasing dearness allowance on Diwali. If we look at the data of AICPI, then this increase can be of 4 percent. However, there has been no official statement on this yet.
Under the 7th Pay Commission , employees will be given 34 to 38 percent dearness allowance after 4 percent DA hike. This is expected to increase the salary of the employees. This hike can be announced after the meeting of the Union Cabinet chaired by Prime Minister Narendra Modi . After the decision by the Central Government, the benefit of DA hike will be given to government employees and pensioners will be given the benefit of DR hike.
Why amendment is done in DA and DR
The dearness allowance and dearness relief are increased by the government after every six months. This increase is done by the government to provide relief from inflation and to live without a difficult life, so that the government employees do not have much pressure of inflation.
How Dearness Allowance (DA) is Calculated
Its calculation is done on the basis of basic pay, higher your basic salary, more DA and DR you get.
- For Central Government Employees: Dearness Allowance Percentage = ((Average of AICPI (Base Year 2001=100)-115.76)/115.76 for last 12 months) *100
- Here AICPI is All India Consumer Price Index.
- For Public Sector Employees: Dearness Allowance Percentage = ((Average of AICPI (Base Year 2016=100)-126.33)/126.33 for last 3 months)*100
How much will the salary increase
If the DA and DR is increased by 4 per cent, then the existing 34 per cent will increase to 38 per cent. According to Shriram V, CHRO at BankBazaar.com, assuming a basic salary of Rs 35,000, the current DA would be Rs 11,900. A CNBC report states that a 4 per cent hike would mean a revised DA of Rs 13,300, which would be Rs 1,400 per month.