7th Pay Commission Latest News: If you or any of your family members are central government employees, then this news will bring you joy.
Good news awaits as the employees working for the central government are about to receive significant benefits. There will be a substantial increase in their monthly salary by Rs 9,000 in one go.
This change is being implemented under a rule established by the Central Government. It is important to note that when this rule, which was formulated in 2016, comes into effect, central employees will experience a remarkable surge in their salary.
Current DA and Upcoming Changes
Under the rule of the Seventh Pay Commission, the DA for central employees is revised every six months. Presently, they are receiving a 42 percent dearness allowance. However, from July 1 onwards, it is expected to increase to 46 percent. Furthermore, on January 1, 2024, the government plans to raise the dearness allowance to 50 percent, subject to the government’s regulations.
Zero DA at 50 Percent
According to the provisions of the Seventh Pay Commission, the dearness allowance becomes zero when it reaches 50 percent for employees. Additionally, 50 percent of the DA is added to the basic pay as per the regulations.
Impact on Basic Salary
To illustrate, suppose an employee currently has a basic salary of Rs. 18,000. After factoring in the DA, their salary will increase to Rs. 27,000. Consequently, the employee will enjoy a monthly benefit of Rs. 9,000 in their basic salary. Similar adjustments were made in 2016 during the implementation of the Seventh Pay Commission when dearness allowance was added to employees’ basic salary.
Revised Basic Salary Calculation
Considering the current basic salary of Rs. 18,000, with a potential DA increase of Rs. 9,000, the combined basic salary will amount to Rs. 27,000. Subsequently, subsequent revisions will be made at one or two percent intervals. Employees will now have to wait for salary revisions, whereas in the past, the dearness allowance used to exceed 100 percent.
Overall Salary Increment
Currently, the lowest basic salary at Pay-Band Level-1 stands at Rs. 18,000. With a calculation of 42 percent, the dearness allowance amounts to Rs. 7,560. However, with the expected increase to 50 percent, the dearness allowance will reach Rs. 9,000. As per the rules, when the dearness allowance reaches 50 percent, it will be merged with the basic salary. Consequently, the basic salary of those earning Rs. 18,000 will rise to Rs. 27,000. Looking at the monthly benefit of Rs. 9,000, employees will witness an annual increment of Rs. 1,08,000.