The 7th Pay Commission brings exciting news! The Narendra Modi government is considering a festive boost for central government employees during the holidays by raising Dearness Allowance (DA).
7th Pay Commission DA Hike
The central government might share some good news about a Dearness Allowance (DA) hike between Navratris and Diwali. Rumours say there could be a 4 percent increase, from the current 42 percent to 46 percent, following the formula recommended by the 7th Central Pay Commission.
How Much Salary Will Increase With 46% DA Hike for Central Government Employees?
The Central Government employees get a 42 percent bump in Dearness Allowance (DA). If the expected increase happens, it’ll go up to 46 percent. For someone with a Rs 18,000 salary, that means an extra Rs 8,640 yearly, and for a Rs 56,900 salary, it’s a significant increase of Rs 27,312 annually.
Let’s calculate on minimum basic salary DA hike:
- “Basic Salary – Rs 18,000
- Current DA at 42 percent – DA hike by Rs 7,560 per month
- New DA at 46 percent – DA hike by Rs 8,280 per month
- DA Increase – Rs 8,280- 7,560 = Rs 720 per month
- Annual Salary Increase Rs 720 X 12= Rs 8,640,” mentioned by zeenews.India
Let’s calculate on maximum basic salary DA Hike:
- “Basic Salary – Rs 56900
- Current DA at 42 per cent – Rs 23,898 per month
- New DA at 46% – DA hike by Rs 26,174 per month
- DA Increase – Rs 26,174 – Rs 23,898 = Rs 2,276 per month
- Annual Increase in DA – Rs 2,276 X 12 = Rs 27,312,” mentioned by Zeenews.India
Also read:
EPF Balance: How to Calculate Interest Rate the Right Way?
DA Hike Approved in March 2023
In March, Modi approved giving Central Government employees and Pensioners an extra installment of Dearness Allowance and Dearness Relief from January 1, 2023. This extra bit will be 4% more than the current 38% of Basic Pay/Pension to help with the rising prices.
