7th Pay Commission: Govt hikes DA by 4%, jute MSP by Rs 300

The decision will be applicable retrospectively from January 1, 2023, he said, adding that the additional instalment will represent an increase over the existing rate of 38 percent of the basic pay/pension, to compensate against price rise. The hike is in line with the recommendations of the 7th Central Pay Commission. The last hike was announced in September 2022, applicable from July 1 last year.

The combined impact on the exchequer on account of both DA and DR would amount to Rs 12,815.60 crore per annum. The move is expected to benefit no less than 47.58 lakh Central government employees and 69.76 lakh pensioners.

The DA and DR are paid to central employees or pensioners to adjust their cost of living and to protect their basic pay or pension from erosion in real value.

Thakur also announced that the Cabinet Committee on Economic Affairs has decided to hike MSP on jute by Rs 300 to Rs 5,050 per quintal. This would ensure a return of 63.20 percent over the all-India average cost of production, assuring at least 50 percent as margin of profit, he said.