7th Pay Commission: Central Government employees likely to receive DA hike from July, increase in salary

7th Pay Commission: The latest news on the 7th Pay Commission reveals that Central Government Employees are anticipated to receive an augmentation in their dearness allowance starting from July. The announcement of the Dearness Allowance Hike, however, is yet to be made by the government.

During the ongoing financial year, the government plans to raise the dearness allowance for the first time. Based on the April data of AICPI (All India Consumer Price Index), it is highly likely that employees will witness an increase of approximately 3 to 4 percent in their salary as dearness allowance. The extent of this increase will also depend on the figures recorded for the months of May and June. Favorable AICPI figures during these months could lead to a 4 percent surge in both dearness allowance and dearness relief.

Let's look into the extent of the anticipated dearness allowance increment. Presently, central employees receive a dearness allowance of 42 percent. If the dearness allowance is further increased by 4 percent, the employees' dearness allowance will rise to 46 percent. Media reports suggest that the AICPI figure for April stands at 134.2 points, resulting in a DA score of 45.06. The index is projected to reach 46.40 during May and June, thus making a 4 percent DA hike highly likely.

Now, let's examine the impact of this increase on the employees' salary. If an employee's monthly salary amounts to Rs 18,000, the dearness allowance at the current rate of 42 percent would be Rs. 7,560. However, considering the DA calculation based on a 46 percent dearness allowance, it would amount to Rs. 8,280. Consequently, the monthly salary would witness an increment of Rs. 720, resulting in an annual increase of Rs. 99,360.

Moreover, besides the DA hike, employees might also witness a rise in their basic salary in July. Speculations suggest that the basic salary of central government employees could increase by Rs. 8,000. Consequently, if an employee's minimum salary is Rs. 18,000, it would elevate to Rs. 26,000.

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