In the latest development concerning the 7th Pay Commission, central government employees are poised for a substantial boost in their income. The government's decision to increase dearness allowance (DA) by 4% elevates the total DA to 46% of their basic salary. Additionally, non-gazetted railway staff will be gratified with an additional bonus equivalent to 78 days' salaries, ushering in a cheerful Diwali for millions of government employees.

Union Information and Broadcasting Minister Anurag Thakur has shared this heartening news, underscoring the positive effects of the DA and dearness relief (DR) hike on nearly 49 lakh central government employees and approximately 68 lakh pensioners. This increment, effective from July 1, 2023, forms part of the government's semi-annual endeavor to compensate employees and pensioners for the escalating cost of living.

The financial implications of these adjustments are considerable, with the combined outlay of DA and DR amounting to an annual expenditure of Rs 12,857 crore for the government.

But the festive spirit doesn't stop there. The government has extended its benevolence to railway staff by announcing a Diwali bonus. More than 11.07 lakh non-gazetted railway employees, including track maintainers, loco pilots, train managers, station masters, supervisors, technicians, and other Group 'C' staff (excluding RPF and RPSF personnel), will receive a bonus equal to 78 days' salaries. This gesture is projected to incur an expense of Rs 1,968.87 crore for the exchequer.

For government employees, the 4% DA hike translates to a significant upswing in their monthly basic salary. To illustrate, an employee with a 42% DA and a basic salary of Rs 18,000 previously experienced an increment of Rs 7,560. Now, with the supplementary 4% hike, their minimum monthly basic salary will surge to Rs 8,280. In a similar vein, an individual with a basic salary of Rs 56,900 and a 42% DA saw their salary grow by Rs 23,898. With the most recent 4% hike, their minimum monthly basic salary will now reach Rs 26,174.

The calculation of DA and DR hikes is rooted in the percentage increase in the 12-month average of the All India Consumer Price Index (AICPI) up to June 2022. While the government revises these allowances on January 1 and July 1 every year, the official announcements typically occur in March and September. For central government employees, the calculation is as follows:

Dearness Allowance Percentage = ((Average of All-India Consumer Price Index (Base Year 2001=100) for the past 12 months - 115.76) / 115.76) x 100.

With this recent DA hike and the Diwali bonus, government employees and pensioners have cause for celebration. The augmented financial support not only acknowledges their contributions but also serves as a pivotal step in helping them manage the ever-rising cost of living