7th Pay Commission: Huge update on DA hike, announcement likely on this date

7th Pay Commission latest news: We are in July and the anticipation around the next round of Dearness Allowance (DA) hike for central government employees is growing. It has been reported that the next round of revisions will bring an increase of up to Rs 40,000 in the salaries of central employees.

The AICPI data has also fuelled speculations of a higher-than-expected DA hike. While initial reports had suggested a 4 percent or a 5 percent hike, the number is now being expected to reach 6 percent. A 6 percent hike will bring the DA figure for central government employees to 40 percent from the current 34 percent.

Big Update! When is the DA hike announcement expected?

Reports suggested that the DA hike announcement may come around the end of July. Some reports had earlier put down the date as July 31, which would bring good news and more money to bank accounts of Central Government Employees in August. 

Update: The DA hike may be announced on August 3 after a scheduled cabinet meeting on the day, as per a latest report from Zee Business.

READ | Retail inflation eases to 7.01% in June 2022, remains above RBI's target band for 6th straight month

How is the AICPI pattern signaling higher DA?

The All-India Consumer Price Index (AICPI) data has been on the rise since February this year. The numbers for May saw a substantial jump of 1.3 points taking AICPI to 129. As per reports, a 6 percent hike will be likely even if the number for June does not register an increase.

Increase in salary that central government employees can expect

A 6 percent hike will bring about a roughly Rs 3,414 hike per month for employees with a basic salary of Rs 56,900. Compared to the DA received currently of Rs 19,346 per month on 34 percent figure, the amount will be Rs 22,760. The total annual increase in salary comes to Rs 40,968.

Similarly, the DA hike for a basic salary of Rs 18,000 will be Rs 1,080 per month, taking the DA amount to Rs 7,200 per month from current Rs 6,120 per month. The total increase in case of a a DA hike of 6 percent will come to Rs 12,960 annually.