7th Pay Commission Recent news: A significant update has been provided for central government employees in advance of the anticipated 2023 Dearness Allowance (DA) increase. A new formula for calculating DA will be used in its place. The Ministry of Labor and Employment has altered the formula.
Modification to the formula for calculating the DA The Center has decided to change the base year for the DA hike. With 2016 as the base year, a brand-new WRI-Wage Rate Index series has been released. According to the rules of the 7th Pay Commission, the old series with a base year of 1963-65 will be replaced by a new series with a base year of 2016=100.
The current DA employment rate and basic salary are used to calculate the DA raise for government employees. For a basic salary of Rs 18,000 at the current rate of 12%, the formula is DA (18000 x 12)/100. The outcome is separated by 115.76 and afterward increased by 100. The DA percentage is the same as the CPI’s 12-month average of 115.76.
DA benefit calculation If an employee’s basic salary is Rs 26,000, the DA benefit would be Rs 9,880 based on the 38 percent calculation. If the anticipated 4% increase is approved, this basic pay will see a salary increase of approximately Rs 910, bringing the total to 42%.
The anticipated announcement could be made during the March Holi festival the following year. According to the guidelines set forth by the Seventh Pay Commission, DA increases will also be subject to taxation for Central Government employees.
