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7th Pay Commission: 3 Good news for employees! Heavy increase in DA and salary is possible, Salary will jump up to 96000, know updates on 8th Pay Commission

7th Pay Commission: Once again in July, the central government may increase the dearness allowance of the employees and pensioners. Since DA is calculated on the basis of AICPI Index released by Labor Bureau, the April AICPI figure is 134.2 point and DA score is 45.06, therefore 4% DA increase is expected. Although the figures for May and June are yet to come, it will indicate by what percentage DA will increase in July.

7th Pay Commission DA-HRA/Fitment Factor Hike: Before the upcoming elections, central employees and pensioners can get many big gifts together. There is news that the dearness allowance of employees-pensioners can be increased by 4% again next month, after which the total DA will be 46%. This will be the second hike of the year. To increase the salary of the same employees, the rates of fitment factor can also be revised again. Earlier in 2016, there was a change in the rates. Apart from this, there can be an update on House Rent Allowance and 8th Pay Commission.

Will DA increase next month?

According to media reports, once again in July, the central government may increase the dearness allowance of the employees and pensioners. Since DA is calculated on the basis of AICPI Index released by Labor Bureau, the April AICPI figure is 134.2 point and DA score is 45.06, therefore 4% DA increase is expected. Although the figures for May and June are yet to come, it will indicate by what percentage DA will increase in July.

1 crore employees-pensioners will be benefited

Currently DA is 42%, which is applicable from January to June 2023. If there is an increase of 4% then the DA of the employees will be 46%. The new rates will be applicable from July 1, 2023 and can be announced between Raksha Bandhan to Diwali. Official confirmation is awaited. Its benefit will be given to 48 lakh employees and 69 lakh pensioners. This will be the second hike of the year. With this, an employee with a salary of Rs 18000 will get Rs 8640 and an employee with a salary of Rs 56000 will get an annual benefit of Rs 27312. Similarly, there will be different increase in the salary of different level employees.

How much salary-pension will increase at 46% DA / DR

For example, if the basic pay of a central employee is Rs 18,000, then after increasing DA, it will increase by Rs 720. In this way annually he will get Rs 8640 more salary.
If the basic salary is Rs 56900, then he will get Rs 2,276 more every month in terms of 4% more DA. Annually he will get a profit of Rs 27,312.

If the monthly take-home salary of a government employee is around Rs 42,000 and the basic pay is around Rs 25,500, then he still gets Rs 9,690 as DA. Now in the event of 4% DA hike, this DA money will increase to Rs 40,740. So in this case, the take home salary will increase by Rs 4,020 every month.

Monthly pension of 69.76 lakh pensioners will also increase. For example if someone
If he gets a basic pension of Rs 30,000 a month, he gets Rs 44,400 as dearness relief. 4
After the percent DR increase, this money will increase to Rs 42,600, ie Rs 800 per month in pension.
will increase.

Fitment factor may increase

If media reports are to be believed, the fitment factor of central employees may also be revised before the upcoming elections. Presently the fitment factor is 2.57 per cent and salary is being given on this basis under the 7th pay scale. But the employee unions have been demanding to increase it for a long time, in such a situation, there is a possibility that the government may again revise the fitment factor amid the rising demand for the restoration of old pension and outstanding DA arrears of 18 months. Make it 3.00 percent or 3.68 percent can be done till It can be implemented from 2026 and its decision can be taken by the end of 2023. However, no statement or official confirmation has been made by the government in this regard yet.

Update on 8th Pay Commission

If media reports are to be believed, a major decision can be taken on the Eighth Pay Commission before the upcoming elections. The kind of discussions going on across the country regarding the Old Pension Scheme and the National Pension System, speculations are being made that the Central Government may consider implementing the Eighth Pay Commission.

Since the 7th Pay Commission was constituted in the year 2013 and it was implemented in the year 2016. The recommendations of the same new pay commission are implemented after every 10 years, so it is believed that the central government will decide before the Lok Sabha elections. A major decision can be taken regarding the formation of the 8th Pay Commission. However, no official announcement has been made yet.

There will be a jump in salary up to 96000

The last time the fitment factor was increased in 2016 and from this year the 7th pay commission was also implemented and the minimum salary of the employees was directly increased from Rs.6000 to Rs.18,000 and now if it is increased then the basic salary will be increased from Rs.18000 to Rs.21000 or 26000 will be done.

For example, if someone’s basic salary is Rs 18,000, then his salary excluding allowances will be 18,000 X 2.57 = Rs 46,260. On being 3.68, the salary will be Rs 95,680 (26000 X 3.68 = 95,680) i.e. there will be a profit of Rs 49,420 in salary.

With 3 times the fitment factor, the salary will be Rs 21000 X 3 = Rs 63,000. The same basic pay of Rs 15500 can be increased to Rs 39835. 15500*2.57 = Rs 39,835. This will benefit 52 lakh employees.

House rent allowance may increase

According to media reports, the next revision in house rent allowance along with dearness allowance may be up to 3%. Thereafter the maximum HRA will increase to 30% from the existing rate of 27%. But this will happen only when DA crosses 50%. It is estimated that it may be decided by 2024. Since DA will increase again in 2024, if it increases by 4%, then from January 1, 2024, DA will increase to 50%.

According to the memorandum of the Finance Department, HRA will be 30%, 20% and 10% when DA crosses 50%. The category of house rent allowance is according to X, Y and Z class cities. The central employees who fall in the X category are getting 27% HRA, which will be 30% if the DA is 50%. For Y class it will increase from 18% to 20%. For Z class people, it will increase from 9% to 10%.

Parvesh Maurya
Parvesh Maurya
Parvesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @ informalnewz@gmail.com
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