Centre may hike DA by 4% for central government employees and pensioners.

The
Union Government is likely to soon hike the dearness allowance (DA) and
dearness relief (DR) under 7th Pay Commission for its employees and pensioners
by 4% to 42 % from the existing 38%.
However,
no official notice has been released by the government.
So
with a hike by 4%, suppose the basic salary of central employees is Rs 25,500
per month.
Currently,
the DA of employees is Rs 9,690 at 38% but it the government approves 4% DA
hike, the dearness allowance will increase to 10,710.
After
the latest hike, the employees monthly salary will hike by Rs 10,710 - Rs 9,690
= Rs 1,020.
Similarly, suppose a retired employee gets a basic pension of Rs
35,400 per month. At 38 % dearness relief, the pensioner gets Rs 13,452.
However, with 42 % DR, he will receive Rs 14,868 every month. So, his pension
will rise by (Rs 14,868-Rs 13,452) i.e, Rs 1,416 per month.
The
dearness allowance is usually increased periodically i.e., it is revised twice
every year- January and February intended to make up for the increase of living
expenses brought on by inflation.
Usually
the hike and the payout is done in March, so for this year, employees could
receive their revised salary from March 31, 2023.
According
to a report by PTI, the arrears for the months of January and February will
also be added to the final amount.
Last
year, the centre was hiked in March and then later in September. It was hiked by
4% to 38% from the existing 34%.
This
is not the first time reports are circulating that a DA hike announcement will
be made soon. Earlier, it was said that the DA hike will be announced soon
after Holi (March 8), however, that didn’t happen.
(Source-
Economic Times)
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