7th Pay Commission BIG Update: Will Govt Announce 4 Per Cent DA Hike Tomorrow?

7th Pay Commission Latest Update: Once again speculations are rife that the 4% Dearness Allowance (DA) hike for over 50 lakh central government employees will be announced anytime soon. Though an official confirmation is awaited (at the time of filing the story), several media reports claimed that the government has called a crucial meeting on March 22, Day 1 of Chaitra Navratri, to take a decision on the first dearness allowance (DA) hike of 2023.

If the government approves it, the DA hike would be effective from 1 January 2023.

This is not the first time reports are floating that a DA hike announcement will be made soon, earlier it was claimed that the much-awaited decision will be taken after Holi (March 8), however, that did not happen. It's also noteworthy to mention that the DA is revised twice---in January and July and the government make the announcement regarding the DA hike in March.

7th Pay Commission Update: How Much Salary Will Increase After 4% DA Hike

• With the 4% DA hike, the in-hand salary of central government employees will increase. Let's understand this with an example of an employee who gets a basic salary of Rs 25,500 per month.
• DA of employees is Rs 9,690 at 38%. If the government approves 4% DA hike, his/her dearness allowance will climb to 10,710.
• After the latest hike, his/her monthly salary will rise by Rs 10,710 - Rs 9,690 = Rs 1,020.

7th Pay Commission Update: How 4% DR Hike Will Impact Pensioners?
If a retired employee receives a basic pension of Rs 35,400 per month. At 38 per cent dearness relief, the pensioner gets Rs 13,452. However, with 42 per cent DR, he will receive Rs 14,868 every month. So, his pension will rise by (Rs 14,868-Rs 13,452) i.e, Rs 1,416 per month.