7th Pay Commission: Center likely to announce DA hike for govt employees today, check how much salary will increase
7th Pay Commission Latest update today: When the DA was increased last time in October 2023, the DA was increased by 4 percent to 46 percent.
7th Pay Commission: Here comes a wonderful news for the central government employees: the Center is likely to announce a 4% DA hike for them in today’s cabinet meeting. The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, will meet later in the day and is likely to approve a 4 percent increase in dearness allowance (DA) for central government employees. It was previously speculated that the central government could increase the DA before Holy given the general elections scheduled in the coming months.
Total DA increase to 50%
With the latest DA increase of 4 percent, the dearness allowance and the dearness exemption will increase to 50 percent. It should be noted that the DA and DR are increased twice a year, starting in January and July. However, the increase in DA and dearness relief (DR) is decided by the central government based on the All-India CPI-IW data.
When the DA was last increased in October 2023, the DA was increased by 4 percent to 46 percent.
50 Lakh government employees are benefiting from it
The decision to increase DA is expected to benefit the existing 50 lakh government employees and 62 lakh pensioners under the central government. After approval by the cabinet, the proposed DA increase will take effect from January 1, 2024.
Last year, the Center government approved Diwali bonuses for Group C officials and ungazetted Group B officials, including paramilitary forces. It is to be noted that the Center had fixed a limit of Rs 7,000 for the calculation of non-productivity related bonuses (ad hoc bonuses) for central government employees for the financial year 2022-23.
How DA walk is calculated
The central government employees should note that Dearness Allowance (DA) is a cost of living adjustment allowance given by the government to central government employees and pensioners to mitigate the challenges of price rise and inflation.
The DA increase is calculated as a percentage of the base salary. For example, for Central Government employees: Dearness Allowance percent = ((Average of AICPI (Base Year 2001=100) for the last 12 months -115.76)/115.76) *100.
Will other benefits increase?
With a 4% increase in DA, the total DA will reach 50% this time and if the DA reaches 50%, certain other allowances and components of salary will also increase. View the full list here:
- Housing allowance
- school allowance for children
- Special allowance for childcare
- Subsidy for hostels
- Transport of personal belongings
- Tip
- Clothing allowance
- Mileage reimbursement for your own transport
- Daily allowance
How much HRA will increase?
Generally, central government employees are given Housing Allowance (HRA) depending on the category of the city in which they live. As per the recommendations of the 7th Pay Commission, HRA has been rationalized to 24%, 16% and 8% of housing allowance. the basic wage for class in X, Y and Z cities.