Employees of the governmental departments do not need to worry this financial year as the 7th Pay Commission has recommended increasing DA. This rise has been intended to accord some inflation relief as on new DA rates employees will be able to receive a rather better monthly remuneration.
Awareness of 7th Pay Commission and DA Hike
The 7th Pay Commission which was effected in 2016 is currently the one used in making payments to the government employee. From time to time, attempts have been made to enhance the Dearness Allowance to assist workers to deal with the forces of inflation. On the Pay Commission front, there are no changes proposed this year but their will be a change in the DA to assist the employees financially.
Anticipated Rise in House Rent Allowance
At the moment, the DA is allowed to be 50 percent of the current salary under the 7th Pay Commission. However, with inflation now rising, this has been deemed unproductive for most workers because of the following reasons. On this, government has proposed a 3% increase, in the DA from 50% to 53%. As much as the actual implementation is waiting for clearance by the central government and the finance department, the proposed rise affects a lot of employees positively.
How the DA Increase Will Affect Salaries
In the light of implementation of the proposed 3% DA hike, the government employees are likely to receive a discernible raise with their basic salaries. For instance, if the house testing employee earns a salary of ₹18000 per month then the raise would be ₹540 per month or ₹6480 per year. In the same way, an employee, who is currently paid ₹ 56,900 per month would get ₹ 1,707 every month and thereby, an addition of ₹ 20,480 per year.
Factors That Contributed to the Increase in DA
Several factors have prompted the government to consider increasing the Dearness Allowance
Rising Inflation: The subsistence rise in the cost of living has not stopped and the DA increase is aimed at assisting employees deal with their expenses better.
Employee Requests: Government employees have been consistently requesting an increase in their DA to make up for the rising inflation that has made the current salary less sufficient.
Adjustments in the 7th Pay Commission: Increasing the DA aligns with the ongoing adjustments and revisions under the 7th Pay Commission to ensure that employees’ pay keeps pace with inflation.
The proposed 3% hike in Dearness Allowance is a welcome change for government employees, aiming to provide financial relief and adjust their earnings in line with inflation. As the final decision is awaited, employees can look forward to a potential boost in their salaries soon.
