7th Pay Commission : Huge increase in dearness allowance is expected from July 2023

Last Updated on July 30, 2023 by Brajesh

August month will bring a smile and happiness on the face of Central Government Employees. Actually, the Dearness Allowance of Central Government Employees is expected to surge after 4 months of waiting. CPI date will be released on 31st July which will finally decide the impact on of Dearness Allowance of Employees.

Expected Hike in DA

DA is revised according to the current consumer Price Index Numbers for Industrial workers (CPI-W index). More than 1 Crore Central Government Employees and retirees will get the benefit of expected Increase in Cost Price Index (CPI) data for Jun 2023 which is suppose to out on 31st July 2023 evening. After almost 4 month of waiting Central Government will again get a substantial increase in their DA. Central Government Employees are currently receiving DA of 42 percent which is expected to go up by flat 4 percent to 46 percent.

Reimbursement of Increased DA

Final DA figure for July 2023 will be calculated after getting the figure of CPI on 31st July 2023 , however it is expected that the final Dearness Allowance figure will be announce in Sep 2023. Arrear is expected to be given with September month salary for July & Aug 2023. The DA is revised twice a year, in January and July, in order to help Central government employees keep up with rising inflationary pressures.

As compare to Mar 2023, a change of 90 basis points has been seen in CPI data for April 2023 and 50 basis points in May 2023.

7th Pay Commission : Huge increase in dearness allowance is expected from July 2023

Effective 2021, Central Government Employees has got a flat increase of 15 percent in their Dearness Allowance. The DA is revised twice a year, in January and July, in order to help Central government employees keep up with rising inflationary pressures.

HRA is also expected to Increase

According to 7th Pay commission, it is also expected that apart from Dearness Allowance, House Rent Allowance will also increase for the concern employees which can be seen as double bonus to the Central Government Employees. This will again be effective from next half of the Financial Year 2023-24. HRA is expected to increase by 3 percent in category X city & 2 percent and 1 percent in City Y & Z respectively.

Currently HRA is categories in 3 Cities (City X, Y & Z). Those staying in City X are getting higher HRA then City Y & Z. City X employees are entitled to receive 27 percent , whereas City Y & Z receive 18 percent & 9 percent respectively

 

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