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Good News for Government Employees: 8% DA Hike by 7th Pay Commission, When Can You Expect the Benefits?

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Implementation of 7th Pay Commission Benefits for State Government Employees and Pensioners

In a recent government order, it was announced that approximately 9.50 lakh employees and pensioners of the state government would be covered under the 7th Pay Commission. These individuals stand to benefit from the increase in dearness allowance (DA) and dearness relief. The government has decided to implement an 8 percent increase in DA in two phases. The initial 4 percent increase will take effect from July 1, 2022, while the remaining 4 percent will be applicable from January 1, 2023. This increase aligns with the guidelines established by the Central Government.

Disbursal of Arrears in Three Installments

The government has planned to distribute the previous arrears in three separate installments. The first installment of arrears will be disbursed alongside the salary for the month of June. Subsequently, the second and third installments will be paid along with the salary for October 2023.

Impact on the Exchequer and Gujarat’s Previous Announcement

The government has estimated that the increase in DA will impose an additional burden of Rs 4,516 crore on the exchequer. Earlier, in August 2022, the Gujarat government had announced a 3 percent DA increase, which was implemented starting from January 1, 2022.

Current and Expected DA for Central Government Employees

At present, central government employees receive a DA of 42 percent. The upcoming DA announcement by the Central Government is expected on July 1. Speculations suggest a 4 percent increase in DA, which would raise the total DA for central employees to 46 percent.

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