7th Pay Commission: In a bonanza for central government employees, the Union Cabinet on Thursday approved a 4 per cent hike in dearness allowance (DA) to 50 per cent of the basic pay. The 4% DA hike, which will benefit over one crore central government employees and pensioners, will become effective from January 1, 2024. Apart from this, HRA has also been increased for the employees.
Briefing about the Cabinet decisions today, Union Commerce and Industry Minister Piyush Goyal said, “The DA hike will cost the exchequer Rs 12,868 crore.”
The government has also increased dearness relief (DR) by 4 per cent. DA is given to government employees, while DR is given to pensioners. DA and DR are hiked twice a year, with effect from January and July.
How Much Salary Hike Will Central Govt Employees Get?
Since the government has announced a 4 per cent DA hike, how much is the salary hike likely for central government employees? If somebody’s salary is Rs 50,000 per month and has Rs 15,000 as the basic pay. He or she currently gets Rs 6,900, which is 46 per cent of the basic pay. However, after the 4 per cent hike, the employee will get Rs 7,500 per month, which is Rs 600 higher as compared with Rs 6,900 earlier. So, if someone has a Rs 50,000 salary a month with Rs 15,000 as the basic pay, his or her salary will rise by Rs 600 per month.