Amidst the festive season, the central government might have some great news for millions across the country. Under the 7th Pay Commission, it is speculated that the government could soon make a significant announcement related to the Dearness Allowance (DA) and Dearness Relief (DR) for pensioners and central government employees.
How Much Can the DA Increase?
While no official statement has been released as of now, there are indications that an announcement might come this October. Various media reports suggest that the central government could consider a 4% hike in the DA. If this comes to fruition, the current DA rate of 42% could see an increase to 46%. However, the final decision will be made by the government, subject to cabinet approval.
What are DA and DR?
To counteract the effects of rising inflation in the country, the government provides its employees with a Dearness Allowance. This allowance, when increased, enhances the salaries of lakhs of employees. It’s a component of their basic salary. If inflation rises in the country, the government adjusts the DA accordingly. On the other hand, Dearness Relief (DR) is a benefit extended to pensioners by the central government.
Why and When Does the Government Modify the DA/DR?
Due to escalating inflation rates, the government routinely reviews and adjusts the rates of DA and DR every six months.
Projected Salary Impact
To give a practical illustration: Suppose an individual currently has a basic salary of 18,000 rupees per month. With the existing 42% DA, they are receiving an additional 7,560 rupees each month as DA. If the DA is raised to 46%, this amount would increase to 8,280 rupees, which means there would be a monthly increment of 720 rupees in their salary.
In conclusion, while these changes are yet to be officially confirmed, they signify the government’s responsiveness to economic factors and the importance it places on the welfare of its employees and pensioners.
