The Center is soon expected to announce the revised Dearness Allowance (DA) and Dearness Relief (DA) for retirees and central government employees under the 7th Pay Commission as the holiday season approaches.
The announcement may be made in the last week of September, according to media reports, despite the Central government's lack of an official statement on the subject. According to a number of more sources, the DA/DR hike file has achieved its conclusion and is awaiting the Union Cabinet's final approval.
It is expected that it will rise from the present 34% to 38% if the Centre increases the DA and DR. After the Union Cabinet meeting, which is presided over by Prime Minister Narendra Modi, the announcement is most likely to be made.
For central government employees and pensioners, the DA/DR boost has become important as inflation has risen over the RBI calculation.
How much DA and DR Hike is expected?
According to reports, the DA/DR rate will increase from its current level of 34% to 38%. The DA/DR rate was increased earlier this year by the Centre, which decided to do so in March, bringing the rate to 34%.
What will be the basic salary after the DA/DR hike?
The DA/DR at a 38% rate equals Rs 9500 if the Basic Salary/Pension is Rs 25,000. The DA/DR sum is Rs 8500 at a 34% rise rate. As a result, the salary will rise by Rs. 1000 (Rs 950- Rs 850).
To lessen the effects of inflation, the Center usually provides dearness allowances for central government employees and dearness assistance for central government pensioners.
Government personnel should be aware that the DA/DR rates are frequently updated while taking inflation into consideration.
