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7th Pay Commission: DA Hike Confirmed as Diwali Gift for Central Govt. Employees? Know the Latest Update Here

Every year on January 1 and July 1, the central government modifies the allowances given to its employees, however, the decision is often made public in March and September. It is likely that the festival season will bring along good news after the long delay.

Binita Kumari
An employee who receives a monthly salary of Rs 50,000 and basic pay of Rs 15,000 will experience a raise in pay of Rs 600.
An employee who receives a monthly salary of Rs 50,000 and basic pay of Rs 15,000 will experience a raise in pay of Rs 600.

The dearness allowance (DA) for central government employees and pensioners will increase by 4%, according to a proposal agreed upon by the Union Cabinet, which was presided over by Prime Minister Narendra Modi.

The dearness allowance for central government employees was increased twice this year. The administration declared a 3 percent rise in DA in March 2022. The price rise took effect on January 1st, 2022.

How much DA hike will employees get now?

Employee salaries will also be impacted by the 4% increase in DA. With a 4 percent DA raise, someone who previously received Rs 50,000/month in salary and Rs 15,000/month in basic pay will now receive Rs 5,700/month, or 38% of the basic wage (Rs 600 increase).

Therefore, an employee who receives a monthly salary of Rs 50,000 and basic pay of Rs 15,000 will get a hike in pay of Rs 600.

What will be the impact on the government exchequer?

The total effect of Dearness Allowance and Dearness Relief on the exchequer would be in the range of Rs. 12,852.56 billion per year and Rs. 8,568.36 billion in the fiscal year 2022–2023 (i.e., for a period of 8 months from July 2022 to February 2023).

The expected additional financial effects of this rise in seniors' Dearness Relief are Rs. 6,261.20 billion annually, and Rs. 4,174.12 billion in the fiscal year 2022–2023 (i.e., for a period of 8 months from July 2022 to February 2023).

How is the 7th Pay hike decided?

The increase in the DA is based on the percentage growth in the All-India Consumer Price Index for the 12-month average for the period ending June 2022. Every year on January 1 and July 1, the central government modifies the allowances, however, the decision is often made public in March and September.

What’s the latest on 7th Pay Commission?

The maximum pay and compensation for government employees have been increased in accordance with the latest recommendations of the 7th Pay Commission. The highest wage for officers in the Cabinet is Rs. 2.5 lakh, and the Apex scale personnel would receive a raised salary of Rs. 2.25 lakh per month.

Is 7th Pay Commission the last Pay Commission?

Once every ten years, pay commissions for employees are implemented. According to patterns observed during the implementation of the 5th, 6th, and 7th Pay Commissions, it is generally anticipated that the 8th Pay Commission will be established in 2023 and that its recommendations will be put into practise in 2026.

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