7th Pay Commission: Central government may hike DA for employees by 3-4 percent in July

7th Pay Commission DA hike update: The Central Government is once again on the verge of increasing the DA, causing much speculation among employees. Media reports suggest that there may be a surge of about 3 to 4 percent in the dearness allowance from July 1. This comes as the Seventh Pay Commission mandates an increase in the dearness allowance twice a year, during January and July respectively. However, the government is yet to make an official announcement regarding the hike in DA.

Interestingly, the government has continuously increased the dearness allowance by 4 percent since it reached 31 percent. With three such increments, the dearness allowance of central employees and dearness relief of pensioners has already soared to 42 percent. And now, it is speculated to shoot up by another 4 percent.

The central government calculates the dearness allowance based on the CPI-IW index, which is released every month by the Labor Bureau, a branch of the Ministry of Labour. Depending on this, it is decided whether the DA will increase or not. In 2023, there has been a decline in the figures of the All India Consumer Price Index (AICPI) during February, but it has shown an upward trend during March. This has fueled the speculation that the DA may increase soon. A new formula has also been introduced to calculate DA, adding to the uncertainty.

If the government does increase the DA, employees can expect a salary surge. Currently, they receive 42 percent DA. After a 3-4 percent hike, it will soar to a whopping 45-46 percent.

Read more: LIC Policy: Invest Rs 138 per day in this scheme and get up to Rs 23 lakh at maturity