7th Pay Commission Dearness Allowance Hike: How Much Will Salary Be Increased With Upcoming DA Hike? Check Calculation

It is being highly anticipated that the Narendra Modi government might go for a 46 percent DA hike for the central government employees.

New Delhi: 7th Pay Commission Latest update on DA hike: The Narendra Modi government might announce festive bonanza for the central government employees during the holiday season by announcing the Dearness Allowance (DA) hike.

As per media reports, the central government might announce the good news on DA hike between Navratris and Diwali. Media reports are abuzz with speculations that government may announce a 4 percent DA hike from the current 42 percent to 46 percent. The recognised formula, which is based on the recommendations of the 7th Central Pay Commission, shall be followed in order to raise DA.

How Much Will Central Government Employee's Salary Increase After 46% DA Hike

Currently the central government employees are getting 42 percent DA hike. After the increase the DA will reportedly be 46 percent. On a basic salary of Rs 18,000, the annual DA increase will be Rs 8640 while on a basic salary of Rs 56,900, the annual DA increase will be 27,312

Here Is The Calculation On Minimum Basic Salary: DA Hike

1. Basic Salary – Rs 18,000

2. Current DA at 42 percent - DA hike by Rs 7,560 per month

3. New DA at 46 percent - DA hike by Rs 8,280 per month

4. DA Increase – Rs 8,280- 7,560 = Rs 720 per month

5. Annual Salary Increase Rs 720 X 12= Rs 8,640

Here Is The Calculation On Maximum Basic Salary: DA Hike

1. Basic Salary – Rs 56900

2. Current DA at 42 per cent – Rs 23,898 per month

3. New DA at 46% - DA hike by Rs 26,174 per month

4. DA Increase - Rs 26,174 - Rs 23,898 = Rs 2,276 per month

5. Annual Increase in DA – Rs 2,276 X 12 = Rs 27,312

Dearness Allowance Hike March 2023

It may be recalled the Modi had in March gave its approval to release an additional instalment of Dearness Allowance to Central Governments employees and Dearness Relief to Pensioners with effect from 01.01.2023.  The additional instalment will represent an increase of 4% over the existing rate of 38% of the Basic Pay/Pension, to compensate against price rise.