7th Pay Commission: Big announcement on DA hike likely next week, check latest updates

Written By DNA Web Team | Updated: Aug 01, 2022, 03:56 PM IST

7th Pay Commission: The announcement for next round of DA hike for central government employees could be made around August 3.

7th Pay Commission: The second Dearness Allowance (DA) revision of the year for central government employees is likely to be announced next week. While earlier reports had suggested that the DA hike will be announced by July 31 (today), it is now expected that the announcement could be made around August 3 as per latest reports.  

As per latest reports and indications from the All-India Consumer Price Index (AICPI) numbers, a 4 percent DA hike is likely this time. A higher number of 5 or 6 percent has also been speculated earlier but the figure is likely to be at the 4-percent mark. The central government employees had earlier received a 3 percent DA hike earlier in the year, taking the total figure to 34 percent from earlier 31 percent. 

DA hikes were frozen for 18 months amid the Covid-19 pandemic. However, the government provided a one-time increase of 11 percent when it was restarted, taking the figure to 28 percent. A 3 percent hike took the figure to 31 percent in October 2021, and it now stands at 34 percent. With the latest hike expected to be 4 percent, this figure will reach 38 percent for central government employees. 

With the All-India Consumer Price Index (AICPI) on the rise since February this year, the numbers for May saw a substantial jump of 1.3 points taking AICPI to 129, leading to speculation around a 6 percent hike if the trend continued in June. However, the June numbers saw a 0.2 percent increase, taking AICPI to 129.2. This figure is seen as a confirmation of a 4 percent hike by analysts. 

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How much increase is expected in the salary of central government employees?

A 4 percent hike in DA will bring a hike of Rs 8,640 per year for a basic salary of Rs 18,000 and Rs 27,312 more per year for a basic salary of Rs 56,000. 

Currently, central government employees with a basic salary of Rs 18,000 get Rs 6120 per month DA as per 34 percent figure. This amount is likely to increase to Rs 6,840 per month, translating into a a monthly DA increase of Rs 720 and Rs 8,640 per year.

For central government employees with a basic salary of Rs 56,000, the DA currently received is Rs 19,346 monthly which will increase by Rs 2,276 per month to Rs 21,622 with the expected DA hike. This will translate into an annual increase of Rs 27,312. 

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