7th Pay Commission: Government gave a gift by increasing dearness allowance, notification issued


7th Pay Commission: The Modi government has announced to increase dearness allowance for more than 1 crore central government employees and pensioners on September 28, 2022. On October 3, 2022, the Department of Expenditure has issued a notification regarding the order of increase in Dearness Allowance through Office Memorandum.

It is very important to know five things about this notification.

1. Dearness Allowance for central employees has been increased by 4 percent and it has been increased from 34 percent to 38 percent. This hike has come into effect from July 1.

2. For calculation of Dearness Allowance, the term Basic Pay in the revised pay structure means the pay drawn at the prescribed level in the Pay Matrix as per the recommendations of the Seventh Pay Commission approved by the Government. Basic Pay does not include any other type of pay like special pay etc.

3. Dearness Allowance will continue to be a special part of the remuneration and will be treated as salary under the purview of FR9(21).

4) The Department of Expenditure has mentioned that fractions of 50 paise and above in payment of Dearness Allowance can be rounded off to Rs. Fractions less than 50 paise can be ignored.

5. The Department of Expenditure said, “The revised DA rate will also be applicable to Civilian Employees paid from the Defense Services Estimate and will be charged from the Defense Services Estimate. Separate orders will be issued for personnel and railway employees.

The Modi government has increased the dearness allowance of central employees from 34 percent to 38 percent. Which has been implemented from July 1, 2022 to February 2023. On which Rs 6591 crore will be spent in a year and Rs 4394.24 crore will be spent from July to February in 2022-23.

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