fazend, an unqualified major update for the employees of the federal government, will soon be announcing the forthcoming Dearness Allowance (DA) hike under the 7th Pay Commission, which, most likely, would be one of the largest ever increases. It has been reported that the DA increase may scale salaries to unvisited heights, ushering financial relief for the millions of government employees and pensioners.
DA Hike To Create A New Record
At the moment, central government employees are entitled to DA of 46% on their basic salary. From then, it was reported that the next DA hike was going to be 4%, which will give an addition of 50% to the total DA value. This would be the highest increase in recent times and would directly impact the monthly salary amount payable to government employees.
That is over and above the 50% DA, which will automatically revise all other allowances like House Rent Allowance (HRA) and Travel Allowance (TA), which will keep adding to the amount employees take at home each month.
How Much Will The Salary Increase?
Exact salary increase would depend on that part of the gross salary, which can be called the basic salary of an employee. Here is a rough estimate of the salary increase according to the various pay grades:
- Basic Salary of ₹18,000: DA upping to ₹900, taking it to the new DA total of ₹9,000 a month.
- For a basic salary of ₹31,550: Increase of DA of ₹1,260, resulting in DA figure of ₹15,775 a month.
- With a basic pay of ₹56,000: Increase of DA of ₹2,240, thereby bringing the total above ₹28,000 as DA in a month.
These increases will also be reflected in the pension amounts of employees who have since retired and will provide some much-needed financial relief.
Union Cabinet’s Final Decision Soon
The newly revamped salary package crunch for the DA hike was expected to be finalized in an upcoming Union Cabinet meeting, with the revised salary taking effect from January 2025. Government employee unions have been agitating for a higher DA hike in the purest sense regarding keeping their members close to the current rising inflation rate and increased benefits for them.
Conclusion
Should it materialize, this record-breaking increase in DA is going to have favorable financial benefits to government employees and pensioners. The expected increase in DA by 4% does not only increase salaries but will also affect other allowances, hence leading to higher earning potential overall. Employees are now waiting anxiously for an official announcement, which will probably happen soon.
Also Read: Pension Increase Alert: Govt Employees To Receive Extra Benefits from April 1