7th Pay Commission DA Increase News: The central government is considering a significant benefit for its employees, which can lead to a substantial increase in their salary. The salary hike could amount to over Rs. 9,000 at once. This increase will be implemented by the central government as per a rule established in 2016.
According to this rule, when the dearness allowance reaches 50 percent, it will be reduced to zero and the basic salary of employees will experience a significant surge. Now, the question arises as to when the dearness allowance will reach 50 percent and how many times it will be increased. Let’s delve into the details to understand better.
Expected Increase in Dearness Allowance
According to recent media reports, it is anticipated that the central government may soon raise the dearness allowance (DA) for its employees. Under the Seventh Pay Commission, the government typically increases the DA twice a year. Speculations suggest that the DA may be increased by 4 percent in July, taking it from the current 42 percent to 46 percent.
Additionally, it is expected that after six months, another 4 percent increase in DA may be implemented, bringing the total DA to 50 percent. During this time, the 2016 rule of the government regarding DA will remain applicable.
Impact on Basic Salary
When the Seventh Pay Commission was initially introduced in 2016, the central government integrated the existing DA with the basic salary. Then, subsequent salary increases were based on the new DA. It is likely that this rule will be applied once again. The basic salary may have 50 percent of DA incorporated into it, and any future DA increases will be calculated from that point.
Salary Increment for Employees
For employees at pay-bed level one, the current basic salary is Rs 18,000, resulting in a DA of Rs 7,560. However, with a 50 percent DA calculation, the amount would be Rs 9,000. In other words, there will be an overall increase of Rs 9,000 in the total salary. This means that the salary will rise from Rs 18,000 to Rs 27,000. Further increases in DA will be added on top of this amount.