Business / 7th Pay Commission modi govt approves dearness allowance hike of 4 percent

7th Pay commission DA Hike: The decision has been taken by the government on DA hike for central employees. The increase in DA hike has been approved by the Modi cabinet. A formal announcement has not been made about this. It is being told that the information about the cabinet meeting on Wednesday will not be given through a press conference, nor will any press release be issued in this regard.

Decision on dearness allowance on the basis of AICPI index

The Modi government has decided to increase the DA (Dearness Allowance) by 4 percent with effect from January 1. Now it has increased to 42 percent from the existing 38 percent. Let us tell you that the dearness allowance is calculated on the basis of AICPI-IW. Dearness allowance is increased twice a year by the government. It is implemented in January and July. However, this announcement happens late every year. Like this time the decision of dearness allowance for January was taken in March. Similarly, the decision of July is made in September-October.

Announcement can be made before Holi

The Modi cabinet reviewed the dearness allowance figures on Wednesday. But formal approval in this regard has not been announced yet. According to the news published in Zee Business, an agreement has to be made to increase DA to 42%. Sources claim that PM Modi can announce it before Holi. After Holi, the Finance Ministry will issue its notification. Along with the March salary, the increased dearness allowance is to be paid. Employees will also get arrears of two months.

With the increase of 4%, DA will increase to 42 percent. Which will be applicable from January 2023. In this way, the employees will get two months' arrears (DA Arrear) along with the March salary. There will be an increase of Rs 720 per month in the basic salary of Rs 18,000. That is, they will get Rs 1440 as arrears for two months. Lakhs of pensioners have also been given the gift of Holi. The government has also decided to increase the Dearness Relief (DR Hike) by 4%. That is, now pensioners will also be paid dearness relief at the rate of 42%.