7th Pay Commission News: Starting from July 1, 2023, central government employees can look forward to a new dearness allowance (DA) being implemented. There are expectations of a 4% increase in DA from the government’s side.
However, even before this development, there is good news for government employees in Gujarat. The Chief Minister of Gujarat, Bhupendra Patel, has announced an impressive 8% increase in DA/DR for state government employees and pensioners, in accordance with the Seventh Pay Commission.
Good News for 9.50 Lakh Employees and Pensioners: 8% Increase in DA
The government has issued an order stating that approximately 9.50 lakh employees and pensioners of the state government will benefit from the 7th Pay Commission. The increase in dearness allowance (DA) and dearness relief will be advantageous for these individuals. The government has decided to implement the 8% increase in DA in two phases. The initial 4% DA hike will be effective from July 1, 2022, while the remaining 4% increase will come into effect from January 1, 2023. These adjustments adhere to the rules set by the Central Government.
Arrears to be Paid in Three Installments
The government will disburse the previous arrears in three installments. The first installment will be included in the salary for the month of June. Likewise, the second and third installments will be provided along with the salary for October 2023.
The government has estimated that the increase in DA will result in an additional burden of Rs 4,516 crore on the exchequer. Previously, the Gujarat government had announced a 3% DA hike in August 2022, which was implemented from January 1, 2022.
Currently, Central Government employees receive a 42% DA. The next DA announcement by the Central Government is expected on July 1. There are anticipations of a 4% increase, which would raise the DA for central employees to 46%.