7th Pay Commission Latest News Today: Dearness Allowance Hike Soon! How will salary increase with 38? - calculation

7th Pay Commission: Dearness Allowance Hike Soon? How salary will increase with 38? – Check calculation

15 Sep , 2022 By : Monika Singh

7th Pay Commission Latest News Today (15 September 2022): Even though no official confirmation has come from the Government, several reports have claimed that the Central Government is expected to soon announce the revised Dearness Allowance (DA) and Dearness Relief (DA) rates for Central Government Employees and Pensioners respectively. The DA/DR hike announcement may be made in the last week of September.

The DA/DR rate is expected to be increased from the current 34% to 38%. The announcement will be made after the Union Cabinet meeting chaired by Prime Minister Narendra Modi. Reports have also claimed that the file regarding the DA/DR hike has reached the Union Cabinet office and only the final approval is awaited.

Generally, the Government always approves the DA/DR matter. With inflation already reaching higher than the RBI estimates, the DA/DR hike has become important for Central Government Employees and Pensioners.

Dearness Allowance/DR Hike Calculation

Here’s a look at how the salary/pension will increase assuming DA/DR rates go up by 4% to 38%:

If the Basic Salary/Pension is Rs 25,000, the DA/DR at 38% rate will be Rs 9500. At 34% rate, DA/DR amount is Rs 8500. This means salary will increase by Rs 9500-Rs 8500 = Rs 1000.
If the Basic Salary/Pension is Rs 35,000, the DA/DR at 38% rate will be Rs 13,300. At 34% rate, DA/DR amount is Rs 11,900. This means salary will increase by Rs 13,300-Rs 11,000 = Rs 1400.
If the Basic Salary/Pension is Rs 45,000, the DA/DR at 38% rate will be Rs 17,100. At 34% rate, DA/DR amount is Rs 15,300. This means salary will increase by Rs 17,100-Rs 15,300 = Rs 1800.
If the Basic Salary/Pension is Rs 55,000, the DA/DR at 38% rate will be Rs 20,900. At 34% rate, DA/DR amount is Rs 18,700. This means salary will increase by Rs 20,900-Rs 18,700 = Rs 2200.
If the Basic Salary/Pension is Rs 65,000, the DA/DR at 38% rate will be Rs 24,700. At 34% rate, DA/DR amount is Rs 22,100. This means salary will increase by Rs 24,700-Rs 22,100 = Rs 2600.

The monthly salary/pension and DA/DR rates of Central Central Government Employees and Pensioners are decided as per the recommendations of the 7th Pay Commission.