7th Pay Commission: After 4% DA hike, how much dearness allowance central govt employees will get? Check calculation

7th Pay Commission, DA hike: Central government employees are likely to get some good news before Holi 2023. The dearness allowance (DA) is likely to increase by 4%. It is expected that it can be approved in the Union cabinet meeting in the first week of March, according to Zee Business.

At present, the Dearness Allowance of the central government employees is 38%. According to reports, dearness allowance may increase by 4% in January 2023. This means DA will increase from 38% to 42%. The increased DA for central employees from January 2023 can be paid in the salary of March.

Every year, the Centre hikes the DA of government employees and the DR of pensioners twice. First in January and then in July. According to AICPI data, the figures have come till December 2022. Accordingly, a 4% increase in DA is almost certain.

Till December 2022, the figure of CPI(IW) remains at 132.3. It is clear from the figures that the dearness allowance will increase by more than 4 percent.

How much extra central government employees will get after the DA hike?

After the 4% dearness allowance increase, the total DA will be 42%. Now the total annual dearness allowance on the basic salary of Rs 18,000 will be Rs 90,720 (annually). There will be an increase of Rs 720 every month. Currently, at 38%, employees get Rs 6,840 dearness allowance monthly. After the hike, the employees will get Rs 7,560 per month. 

If the Basic salary of the employee is Rs 18,000 per month then

18000 x 42 / 100 = 7560

New Dearness Allowance (42%) Rs 7560/month

New Dearness Allowance (42%) Rs 90,720/annum

Dearness Allowance till now (38%) Rs.6840/month

How much dearness allowance increased 7560- 6840 = Rs 720 per month

Increase in annual salary 720X12 = Rs 8,640

One can calculate his/her DA hike amount by using the above formula with different basic pay.

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