DA Hike 7th Pay Commission: The Reserve Bank of India has retained its inflation forecast for the current fiscal year 2022-23 at 6.7 per cent. According to the Monetary Policy Statement, “Inflation forecast for 2022-23 is retained at 6.7 per cent, Q2 at 7.1 per cent; Q3 at 6.4 per cent; and Q4 at 5.8 per cent, and risks evenly balanced. Q1:2023 CPI inflation for -24 is projected at 5.0 per cent. With inflation remaining intact, central government employees can expect a hike in dearness allowance in the coming months.As per reports, the government may hike DA and DR by up to 4 per cent. The DA and DR are revised based on retail inflation, which has been over 7 per cent for a long time.
How much DA hike is expected?
The AICPI in January and February stood at 125.1 and 125 respectively, while it rose to 126 in March. The AICPI rose to 127.7 in April, due to rising inflation. In May, AICPI’s big jump was 129. Now, if AICPI stays at that level, there is a possibility of a hike of 4 per cent in DA. CPI-based inflation stood at an eight-year high of 7.79 per cent in April. However, in June it cooled down to 7.01 percent.
Presently government employees get 34 per cent DA on their basic pay. If the DA hike of 4 per cent is implemented, they are going to get 39 per cent dearness allowance on top of their basic pay. Dearness Allowance (DA) is given to government employees, while Dearness Relief (DR) is given to pensioners. The government had revised the DA in March this year, which then increased by 3 per cent to 34 per cent of an employee’s basic pay. This was done due to rising prices, and the central government increased the DA by 3 per cent to compensate for the inflation rate. April AICPI has fueled rumors that the government may consider a 4 per cent hike in DA in the coming months.
DA Hike 7th Pay Commission: Salary Calculation
According to the notice of the Department of Expenditure, if the basic pay of an employee is Rs 18,000, he will get dearness allowance of Rs 6,120 after the latest hike implemented in April. Earlier, the employee was getting DA of Rs 5,580 at the rate of 31 per cent DA. This would mean that there has been an increase of Rs 540 after the latest DA hike. If the DA is increased by another 5 per cent, i.e. if the employee gets 39 per cent DA on the basic salary of Rs 18,000, then the DA will be Rs 7,020. This means that if 5 per cent hike in DA is implemented, the salary will increase by Rs 900.
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