7th Pay Commission: Central govt employees likely to get 3-4% DA hike before Diwali?

Central government employees are eagerly waiting for an announcement on a Dearness Allowance (DA) hike that will increase their salaries. Although the official announcement is expected in October, no formal statement has been made yet. Last year, the DA hike was announced in the first week of October.

According to reports, the government is likely to announce a 3-4% DA hike before Diwali. For an entry-level employee with a basic salary of Rs 18,000, this would mean a salary increase of Rs 540-720 per month.

For employees earning Rs 30,000 per month with a basic pay of Rs 18,000, the current DA is Rs 9,000 (50% of the basic pay). A 3% hike will increase this amount to Rs 9,540, while a 4% hike will raise it to Rs 9,720 per month.

DA is provided to government employees, while Dearness Relief (DR) is given to pensioners. Both are revised twice a year, in January and July. Currently, more than one crore central government employees and pensioners receive a 50% DA.

In March 2024, the government had already increased the DA and DR by 4%, bringing them to 50% of the basic pay. The percentage increase in DA is based on the All India Consumer Price Index (AICPI).