7th Pay Commission: Good News for Govt Employees As 4% DA Hike Likely on Cards, Check Details Here
7th Pay Commission: Good News for Govt Employees As 4% DA Hike Likely on Cards, Check Details Here
In a positive development for the central government employees ahead of the festive season, the Centre is expected to announce a 4% increase in the dearness allowance (DA), according to various media reports. This would mark the second hike in both dearness relief (DR) and DA this year. The announcement is anticipated in September, raising the current DA from 50% to 54%.
Despite the upcoming hike, the Centre may not release the 18-month arrears pending since the COVID-19 pandemic. Central government employees have yet to receive these arrears, and there has been no official statement from the government on this matter.
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Dearness Allowance:
The central government grants Dearness Allowance to its employees and pensioners to mitigate the impact of inflation. It helps them cope with rising prices and shields them from the adverse effects of inflation.
Changes in DA:
The DA for central government employees was recently increased by 4%, bringing it to 50% from the previous rate of 46%. This increase was effective from January 1, 2024. Similarly, the Dearness Relief (DR) for central government pensioners also rose by 4%, reaching 50%.
Calculation of DA:
The dearness allowance is calculated using the Labour Bureau’s monthly publication of the Consumer Price Index for Industrial Workers (CPI-IW) data.
Impact on Salary:
With the 4% DA hike, Central government employees will see a significant increase in their salaries. For instance, an employee with a basic salary of INR 40,000 will see a monthly increase of INR 1,600, amounting to INR 19,200 annually. Employees with a basic salary of INR 60,000 will experience a monthly increase of INR 2,400.
It should be noted that the central government has yet to officially announce the date of the DA hike. Only media reports suggest that it will be announced in the first week of September.