7th Pay Commission: DA/DR to be hiked 4%? How will salary increase?

FP Trending • September 15, 2022, 16:06:55 IST

The DA/DR rate is expected to be hiked to 38 per cent from the existing 34 per cent. Earlier, the government had approved a hike in the DA/DR rate in March this year, bringing the rate to 34 per cent

7th Pay Commission: DA/DR to be hiked 4%? How will salary increase?

The Centre is soon expected to announce the revised Dearness Allowance (DA) and Dearness Relief (DA) rates for pensioners and central government employees under the 7th Pay Commission, bringing cheer to many in the festive season. While the government has not yet officially commented on the rumours, media reports state that the announcement may be made in the final week of September. Reports have also claimed that the file regarding the DA/DR hike is only awaiting the final approval of the Cabinet.

What is the revised DA/DR rate expected to be?

According to reports, the DA/DR rate is expected to be hiked to 38 per cent from the existing 34 per cent. Earlier, the government had approved a hike in the DA/DR rate in March this year, bringing the rate to 34 per cent.

How will salary be calculated after the proposed DA/DR hike?

Due to the anticipated hike, the DA/DR rate will increase by 4 per cent. Here’s how it will change the basic salary calculations:

If the basic salary/pension of an employee is Rs 30,000, then the revised DA will be Rs 11,400. Under the existing scheme, the DA/DR amount is Rs 10,200.
If the basic pension/salary is Rs 35,000, then the revised DA/DR amount will be Rs 13,300.This means the salary will increase by Rs 1,400 from the present rate of Rs 11,900.
If the basic salary/pension is Rs 50,000, then the revised DA/DR amount will be Rs 19,000. This will mark an increase of Rs 2,000 over the current amount.
If a person gets a salary of Rs 75, 000, then the increased DA/DR rate will mean a salary hike of Rs 3,000 over the present DA/DR amount of Rs 25,000.

What is DA/DR?

The Centre gives dearness allowance to central government employees and dearness relief to central government pensioners to mitigate the impact of inflation on them. The DA/DR rates are revised periodically, keeping in mind the rate of inflation.

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