7th Pay Commission Approves 4% DA Increase For Central Government Employees

7th Pay Commission: The central government on Wednesday granted approval for a 4 percent increase in dearness allowance (DA), raising the total DA and relief provided to central government employees from 42 percent to 46 percent. This adjustment will be effective from July 1, 2023.

In addition to the DA hike, the Cabinet has sanctioned a Productivity Linked Bonus (PLB) for railway employees, equivalent to 78 days of pay.

To provide further insights into this development, the government has scheduled a press conference in New Delhi at 3 PM today.

The enhanced DA rates will reflect in the October salaries of central government employees. Since the new DA hike covers the period from July onwards, employees will receive arrears for July, August, and September, along with their October salaries. This increase in DA will benefit approximately 48 lakh central government employees and 65 lakh pensioners.

The government is expected to allocate an additional Rs 17,000 crore to accommodate the expenses associated with the increased DA percentage.

The calculation of the 4 percent DA increase is determined by the Consumer Price Index of Industrial Workers (AICPI-IW) following a fixed formula.