7th Pay Commission: The festive season in India could bring a significant piece of good news for millions of people employed by the central government. Under the 7th Pay Commission, the government may soon announce a major update related to Dearness Allowance (DA) and Dearness Relief (DR) for pensioners and central government employees.
How Much Could DA Increase? While no official statement has been released yet, speculations suggest that the announcement might come in October. Some media reports indicate that the government could raise DA by 4%.
How Much Could DA and DR Increase? This could potentially increase the existing 42% to 46%. However, the final decision will be made by the government and is subject to Cabinet approval.
Understanding DA and DR To combat rising inflation in the country, the government provides Dearness Allowance to its employees. An increase in DA results in a higher salary for millions of employees, as it forms a part of their basic salary. When inflation rises, the government also increases DA to compensate for the increased cost of living. Dearness Relief (DR) is provided by the central government to pensioners.
Why and When Does the Government Modify DA/DR? Due to the continuous increase in inflation, the government regularly adjusts the rates of DA and DR every six months.
How Much Salary Increase Can Be Expected? For instance, suppose an employee’s basic salary is currently ₹18,000 per month. With a 42% DA rate, they receive an additional ₹7,560 every month. If the DA increases to 46%, this amount would rise to ₹8,280, resulting in a ₹720 increment in their salary.