7th Pay Commission Latest News: With the latest 4% hike in DR, retired Central government employees will receive 42% of the basic pension.
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New Delhi: The Centre last week announced a hike in dearness allowance (DA) for central government employees and dearness relief (DR) for pensioners by 4%. With this latest hike, the DA/DR rate for central government employees will increase to 42%. For the unversed, the DA is given based on the basic pay of the employees, while the DR is given on the basis of a basic pension. Nearly 47.58 lakh central government employees and 69.76 lakh pensioners will benefit from the latest DA hike.
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How Much Salary to Increase Central Govt Employees?
The Centre’s 4% DA hike will increase the salary of 47.58 lakh central government employees and pension amount for 69.76 lakh pensioners. For example, if a government employee earn Rs 42,000 and the Basic Pay is around Rs 25,500; then he/ she must be getting Rs 9,690 as the dearness allowance. Now, this latest DA amount will increase to Rs 10,710 after the latest 4 per cent DA hike. Hence, there will be an increase of Rs 1,020 in monthly take-home salary for the Central government employees.
How is DR Calculated?
With the latest 4% hike in DR, retired Central government employees will receive 42% of the basic pension. For example, if a pensioner’s basic pension is Rs 25,200 and he was getting Rs 9,576 as DR at 38%. Now with the DR jumping to 42%, the pensioner will now receive Rs 10,584 as DR.
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When DA Hike Will be Implemented?
As per the announcement from the centre, DA/DR hike will come into effect from January 1, 2023. On Friday, the Union Cabinet increased the dearness allowance and dearness relief by 4 per cent to 42 per cent and the move will benefit 47.58 lakh central government employees and 69.76 lakh pensioners.
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Giving details, Union Minister Anurag Thakur said the combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief will be Rs 12,815.60 crore per annum.
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He said the release of the additional instalment of dearness allowance to employees and dearness relief to pensioners will be effective from January 01, 2023. This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.
