7th Pay Commission: 4% DA Hike CONFIRMED In July? Dearness Allowance To Reach Upto 46%? Check How Much Salary Will Increase

New Delhi: 7th Pay Commission Latest update-- Lakhs of central government employees waiting for announcement on hike in Dearness Allowance (DA) may hear update on DA hike by the end of July, as per media reports. The reason behind this brighter hope is due to the calculation of AICPI Index data. The number of AICPI Index for the month of July will be the final data for deciding the calculation of Dearness Allowance on the basis of which the DA quantum will be decided.

The increase in DA will be in accordance with the accepted formular which is based on the recommendations of the 7th Central Pay Commission.

DA May Increase To 46 Percent

If latest media reports are to be believed, there could be a four percent hike in Dearness Allowance in July. This means the total DA could reach upo 46 percent from the current 42 percent.

The Dearness Allowance of central government employees is revised twice a year. The first is given from January to June, while the second comes from July to December.

DA Hike May be announced in September Or October

The Central government had in March 2023 increased the Dearness Allowance of the employees by 4 percent, which came into effect from January 2023. Its next revision is to be held in July 2023, but it is believed that its official announcement may be made in the month of September or October.

Dearness Allowance Hike March 2023

It may be recalled that te Union Cabinet chaired by the Prime Minister Narendra Modi, in March gave its approval to release an additional instalment of Dearness Allowance to Central Governments employees and Dearness Relief to Pensioners with effect from 01.01.2023.  The additional instalment will represent an increase of 4% over the existing rate of 38% of the Basic Pay/Pension, to compensate against price rise. The combine impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs.12,815.60 crore per annum. 

This will benefit about 47.58 lakh Central Governments employees and 69.76 lakh pensioners.