7th Pay Commission Dearness Allowance hike notification for Central Govt Employees is out – 5 key points

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7th Pay Commission Dearness Allowance Hike notification: The Office Memorandum (O.M) for revision rates of dearness allowance (DA) to Central Government employees was issued by the Department of Expenditure (DOE), Ministry of Finance on Monday (October 3, 2022). The revised DA rate will be applicable with effect from July 1, 2022, DOE said in the Office Mem. Here are five points from the O.M. Central Government Employees should know:

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1. New DA Rate

The rate of Dearness Allowance payable to Central Government employees has been increased from 34% to 38% of the Basic Pay with effect from 1st July 2022.

2. DA calculation on Basic Pay

For the calculation of the dearness allowance, the term ‘Basic Pay’ in the revised pay structure means the pay drawn in the prescribed Level in the Pay Matrix as per the 7th Pay Commission recommendations accepted by the Government. The Basic Pay does not include any other type of pay like special pay, etc.

3. DA not to be treated as pay under FR9(21)

DA is a distinct element of remuneration. It will not be treated as pay within the ambit of Fundamental Rules 9(21). “The Dearness Allowance will continue to be a distinct element of remuneration and will not be treated as pay within the ambit of FR 9(21),” the O.M. said.

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4. Rounding off of fractions

The DOE O.M. said that payment on account of Dearness Allowance involving fractions of 50 paise and above may be rounded to the next higher rupee and the fractions of less than 50 paise may be ignored.

5. Separate order of Railways, Defence personnel

The revised DA rate will also apply to the civilian employees paid from the Defence Services Estimates and the expenditure will be chargeable to the relevant head of the Defence Services Estimates. Separate orders will be issued by the Ministry of Railways and Ministry of Defence for Armed Forces personnel and Railway employees.

The Government announced the decision to revise the DA rate in the last week of September. The rate of Dearness Relief for Central Government pensioners has also been enhanced to 38%.