Modi Govt's BUMPER FESTIVE BONANZA: DA Hiked To 46%; Know How Much Salary Will Increase Under 7th Pay Commission

7th Pay Commission Latest update on DA hike: The government has announced a 4 percent DA hike from the current 42 percent to 46 percent for the central government employees.

New Delhi: 7th Pay Commission Latest update on DA hike -- In what will come a bumper festive bonanza for lakhs of central government employees, the Union Cabinet announced a 4 percent hike in Dearness Allowance to 46 percent. 

The government has announced 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, is being followed in order to raise DA.

"The Union Cabinet, chaired by the Prime Minister, Shri Narendra Modi has approved to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.07.2023 representing an increase of 4% over the existing rate of 42% of the Basic Pay/Pension, to compensate against price rise. This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission," said an official release.

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

The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs.12,857 crore per annum. This will benefit about 48.67 lakh Central Government employees and 67.95 lakh pensioners.