DA Hike 7th Pay Commission: Central government employees are likely to get some good news from the government with regard to an increment in their salaries. By next month, that is July, central government employees and pensioners can get an update on their Dearness Allowance or DA hike, which is reportedly on the cards of the government. As per several media reports, the Centre is likely to implement another DA hike for government employees on July 1, which is next month.
7th Pay Commission DA Hike: How Much Will it Increase?
DA is revised by the government in January and July usually, based on the All-India Consumer Price Index (AICPI). In January this year, the government announced a hike in the Dearness Allowance and Dearness Relief under the 7th Pay Commission. The DA and DR for employees and pensioners were hiked by 3 per cent. This time, as per a report by Moneycontrol Hindi, DA may rise as much as 4 per cent if the AICPI remains above 126 over the months of April, May and June. The AICPI in January and February were 125.1 and 125, respectively, while in March it rose to 126. Now, if the AICPI remains to that level, DA hike of 4 per cent is expected.
Currently, government employees get a DA of 34 per cent on their basic salary. If the DA hike of 4 per cent is implemented, they are going to get a 38 per cent dearness allowance on top of their basic pay. Dearness allowance (DA) is given to government employees, while dearness relief (DR) is for pensioners.
How Much Salary Will Increase After DA Hike?
After the latest reported hike, central government employees will get a 38 per cent Dearness Allowance calculated by multiplying the current rate of DA by the base salary of the employee. Let us say that this calculation is done against the salary of an employee whose basic pay is Rs 18,000. At the rate of 31 per cent DA currently, the employee is getting DA of Rs 6,120. If the latest DA hike in July is implemented at 4 per cent, the employee will get DA of Rs 6,840. This means that an increase of Rs 720 will been made after the latest DA hike.
The government hikes DA every year in January and July to set off inflation. Therefore, since the retail inflation is at a years-high, the chances of a hike in dearness allowance are also strong. The CPI-based inflation in April stood at an eight-year high of 7.79 per cent.
It must be noted that Dearness Allowance varies from employee to employee based on whether they work in urban sector, semi-urban sector or the rural sector. At the moment, central government employees get a DA of 34 per cent, which was increased in January by 3 per cent from 31 per cent earlier.
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