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7th Pay Commission Update: Know your DA hike, revised pay, arrears in April salary and more

7th Pay Commission: Central government employees and pensioners are anticipated to receive the amended pay in the April payroll and three months' DA raise arrears.

7th Pay Commission Update: Know your DA hike, revised pay, arrears in April salary and more RBA
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First Published Apr 17, 2024, 1:18 PM IST

7th Pay Commission: Even though the national government declared a 4% increase in DA and DR last month, some employees and pensioners have yet to receive the revised March pay. According to sources, they will now likely get the reduced compensation in April, along with three months' arrears. DA is given to government employees, and DR is given to pensioners. DA and DR are increased twice every year, between January and July.

While announcing the DA raise last month, the government stated that arrears would not be paid until the March wage release.“The payment of arrears of Dearness Allowance shall not be made before the date of disbursement of salary of March 2024,” according to an Office Memorandum (OM) released by the government.

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On March 7, the Union Cabinet authorised a 4% increase in the Dearness Allowance (DA) to 50% of base wage. The 4% DA increase, which would benefit nearly one crore central government workers and pensioners, is effective January 1, 2024. Aside from that, HRA was enhanced for employees. The DA rise will cost the government Rs 12,868 crore.

7th Pay Commission Update: Know your DA hike, revised pay, arrears in April salary and more RBA

Know what salary increase will central government employees get?
How much will central government employees' salaries rise now that the administration has announced a 4% DA hike? If someone's monthly income is Rs 50,000 and their basic pay is Rs 15,000. He or she presently receives Rs 6,900, 46% of the basic salary. However, following the 4% increase, the employee's monthly salary would be Rs 7,500, which is Rs 600 more than the previous salary of Rs 6,900. So, if someone earns Rs 50,000 per month with a base wage of Rs 15,000, his or her compensation will increase by Rs 600 per month.

During the previous DA boost in October 2023, the government raised the dearness allowance and relief by 4% to 46%.

Know how the government calculate the DA hike?
The DA and DR rise is determined by the percentage increase in the 12-month average of the All-India CPI-IW. Though the federal government revises the allowances on January 1 and July 1 each year, the decision is usually made around March and September/October.

In 2006, the federal government updated the mechanism for calculating DA and DR for central government employees and pensioners.

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Dearness Allowance Percentage 
((Average of All-India Consumer Price Index (Base Year 2001=100) for the past 12 months -115.76)/115.76)x100.

For Central public sector employees: Dearness Allowance Percentage = ((Average of All-India Consumer Price Index (Base Year 2001=100) for the past 3 months -126.33)/126.33)x100.

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