7th Pay Commission: There is good news for central employees and pensioners. In the cabinet meeting chaired by Prime Minister Narendra Modi, a decision has been taken to increase the dearness allowance of central employees and pensioners. Dearness allowance has been increased from 38 per cent to 42 per cent. This decision of the Modi government will benefit more than one crore of government employees and pensioners. Every year in March, the central government increases the dearness allowance of central employees and pensioners so that they can be relieved from inflation.
After this decision of the central government, dearness allowance (DA) has been increased by four per cent to 42 percent from the existing 38 percent for more than one crore employees and pensioners. Dearness Allowance for employees and pensioners is calculated based on the Consumer Price Index for Industrial Workers (CPI-IW) issued by the Labor Bureau.
The decision to increase the dearness allowance of central employees and the dearness relief of pensioners will be considered applicable from January 1, 2023. That is, after the decision to increase dearness allowance and dearness relief for employees and pensioners, the government's exchequer will bear a burden of Rs 12,815.60 crore annually. This decision will benefit 47.58 lakh employees and 69.76 lakh pensioners. This increase has been done based on the formula fixed based on the recommendations of the 7th Pay Commission. The Central Government increases the Dearness Allowance ie Dearness Allowance and Dearness Relief ie Dearness Relief by reviewing it twice a year.
How much DA will increase
Due to the increase in dearness allowance, there will be an increase in the salary of central employees. For example, suppose the basic salary of a central employee is Rs.25500. According to 38 per cent DA, now Rs 9690 is available. If the DA becomes 42 per cent, the dearness allowance will increase to Rs 10,710. This means the salary will increase by Rs 1020 every month.
