7th Pay Commission: Central government employees set for DA hike, salary can rise by this much

Written By DNA Web Team | Updated: Jul 03, 2022, 06:13 PM IST

With the rate of inflation outside the 2 to 6 percent comfort window of the Reserve Bank of India (RBI), DA hike of either 4 or 5 percent is expected.

7th Pay Commission latest news: Amid rising inflation, lakhs of central government employees are awaiting relief in the form of Dearness Allowance hike in July. With the rate of inflation outside the 2 to 6 percent comfort window of the Reserve Bank of India (RBI), a DA hike of either 4 or 5 percent is expected this time.

The All-India Consumer Price Index (AICPI) having climbed to a 8-year high, it was being speculated that the DA hike number could go up. A hike of 5 percent is being expected with some reports even claiming a 6 percent hike may be on the cards.

A 5 percent hike will bring the DA figure up from the current 34 percent to 39 percent. Similar to the DA received by central government employees, central government pensioners will receive a hike to their Dearness Relief (DR).

The Central government received a 3 percent DA hike earlier this year which took the figure from 31 percent. Earlier, the Centre had halted hikes in the Covid-19 pandemic between January of 2020 and June 2021. The central employees then saw the DA increase from 17 percent to 28 percent and then became 31 percent with the next hike in October 2021.

How much salary increase is expected with the next DA hike?

In case the DA is hiked by 4 percent and reaches 38 percent, for employees with a basic salary of Rs 18,000 will get a hike translating to Rs 720 per month or Rs 8,640 per year. For a basic salary of Rs 25,000, the amount will fetch Rs 1,000 more per month while Rs 2,000 monthly increase can be expected for those with a basic salary of Rs 50,000. For a basic salary of Rs 1,00,000, the increased amount with a 4 percent hike will fetch Rs 4,000 per month or Rs 48,000 per year.

If the hike decided is 5 percent, this amount will become Rs 900 per month or Rs 10,800 per year for a basic salary of Rs 18,000. For a basic salary of Rs 25,000, an increment of Rs 1,250 per month will be received in case of a 5 percent hike. The amount will be Rs 2,500 for basic salary of Rs 50,000 and Rs 5,000 per month for basic salary of Rs 1,00,000.

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