7th Pay Commission latest news: Good fortune is on the doorstep of central government employees with a hike in Dearness Allowance likely in July. Reports suggest that this hike could make the purses of central government employees fatter by Rs 40,000.
How DA hike may reach 6%?
As per the All-India Consumer Price Index (AICPI) data so far this year, it looks like central employees will likely get a significant DA hike of 5%. This number is up by a percentage from the earlier expected 4% hike. However, if the AICPI data for May remains on upward trend, this number may well increase to 6%, as per a Zee News Hindi report.
With the expected 5% hike, DA which currently stands at 34% after the 3% hike in January this year, will reach 39%. If this becomes 6%, it will be a tremendous boost amid the rising inflation in India and globally. Such a hike would mean an increase of up to Rs 3,400 per month or a little over Rs 40,000 annually on the basis of the basic salary of employees.
When is the announcement expected?
The DA hike comes for central government employees twice a year, first in January and then in July. The announcement usually comes around March and September. The DA hike for central employees was halted by the Finance Ministry amid the pandemic for a year and a half between January of 2020 and June 2021.
It was then initiated in July 2021 when employees saw their DA hiked from earlier 17% to 28%. The next hike in October took DA to 31% followed by the January hike, after which it now stands at 34%
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READ | 7th Pay Commission: Major hike in basic salary of government employees likely, details here
