Will central employees get DA gift tomorrow? 3% increase may be approved in the cabinet meeting, know how much money will increase in the account

Just before the festival of Diwali and Dhanteras, Wednesday, October 21, may prove to be a very important day for about 1.25 crore central government employees and pensioners. The employees, who have been waiting for amendments in Dearness Allowance (DA) and Dearness Relief (DR) for a long time, have their eyes fixed on the possible meeting of the Union Cabinet to be chaired by the Prime Minister. After the announcement of bonus for railway employees, now government servants of all categories are hopeful that the government may give formal approval to the much awaited increase in dearness allowance tomorrow.

Amidst the pressure of rising out-of-pocket expenses and retail inflation during the festive season, central employee organizations are continuously demanding the government to announce DA amendment to be effective from July 1. On the basis of 12 months data of All India Consumer Price Index for Industrial Workers (AICPI-IW) and the formula fixed by the Seventh Pay Commission, it is almost clear how much the allowance of the employees is going to increase. Let us know how much actual increase in DA is being considered this time out of 3, 4 or 5 percent.

As per the rules of the 7th Central Pay Commission, dearness allowance is calculated on the basis of 12 months average of All India Consumer Price Index of Industrial Workers (AICPI-IW) released by the Labor Bureau.

• Most likely 3% increase: Based on the complete data till June released by the Labor Ministry, there has been a net increase of more than 3 percent in the DA index score. The Pay Commission’s round-off formula does not take into account post-decimal figures, resulting in the actual increase being higher. 3 percent Sits.

• Why less chance of 4 or 5%? There is speculation on social media about a 4% or 5% hike, but considering the statistical calculations and the current inflation index level, a 4 or 5% hike does not seem technically possible. In such a situation, there are full indications that the employees will get a solid increase of 3 percent.

The Central Government had revised the DA of the employees in the first half (January cycle) of this year, after which at present the central employees are getting 60 percent dearness allowance of the basic pay.

If tomorrow the Union Cabinet gives its final approval to the 3 per cent hike, then the dearness allowance will increase directly. 63 percent Will reach the level of. In the same proportion, the dearness relief (DR) of pensioners will also increase by 3 percent, due to which there will be a respectable increase in the monthly pension of senior citizens.

If this proposal is approved in Wednesday’s cabinet meeting, then the Department of Expenditure of the Finance Ministry will issue its official notification in the coming few days. This amendment will be considered effective from July 1.

This simply means that central employees and pensioners Arrears for these three months – July, August and September Will be given. According to finance experts, the revised 63 percent DA can be given to the employees along with the salary for the month of October along with the entire arrears of the last three months. With this, a huge lump sum amount will be credited to the bank accounts of the employees just before Diwali.

The 3 percent increase in dearness allowance will significantly increase the monthly salary of employees at every pay matrix level:

• Minimum Basic Pay (Pay Level-1: ₹18,000):

  
  

  • Current DA (at 60%): ₹10,800

  • New DA after 3% increase (at 63%): ₹11,340

  • Direct increase in monthly salary: ₹540 per month

  • 3 Months Arrears (July-September): ₹1,620

• Medium Basic Pay (Pay Level-6/7: ₹56,900):

  
  

  • Increase in monthly salary: Approximately ₹1,707 per month

  • Total Arrears of 3 Months: Approximately ₹5,121

• Senior Administrative Level (Cabinet Secretary/Top Post: ₹2,50,000):

  
  

  • Monthly salary increase: ₹7,500 per month

  • Total arrears for 3 months: ₹22,500

Traditionally, the central government has been announcing dearness allowance for the July cycle in the time between Dussehra and Diwali. Last week, in the meeting on October 14, only PLB bonus of railway employees was approved and the DA agenda was postponed. In such a situation, the cabinet meeting on October 21 is being considered the most appropriate opportunity for this decision. If Cabinet approval is given tomorrow, there will be great joy on the faces of about 50 lakh central employees and more than 65 lakh pensioners of the country before Diwali.