7th Pay Commission: When can central government employees expect next DA hike? What we know so far

7th Pay Commission latest update: Official news about the next revision in Dearness Allowance (DA) for Central government employees is yet to be made, but multiple reports have suggested a likely DA increase of 4%. Currently, the DA for employees under the Centre stands at 34 percent. With the expected increase, this figure will reach 38 percent. The impact on this on their pay outs will range from Rs 8,000 to Rs 27,000 based on their basic salaries.

The official notification for the DA revision is much awaited and the good news could be made official for central government employees as early as Tuesday (May 31), as per a latest report by DNA sister media outlet Zee News English.

DA is a major component of government employees’ salaries and crucial for them to tackle rising inflation. The percentage for DA is reassessed twice every year under the 7th Pay Commission rules. While the first increase is made early on in January, the second usually comes around July. The DA revision is done based on AICPI (All India Consumer Price Index),

This reference point of inflation stood at 125.4 in December 2021 before dipping by 0.3 points to 125.1 in January 2022 and a 0.1 drop to 125 in February. A point increase in March took AICPI to 126. The numbers for April are yet to come out, but a figure of 126 and above will likely result in a 4% DA hike for central government employees.

For maximum basic salary of Rs 56,900, the DA received will go up by Rs 2,276. This will take the monthly DA to Rs 21,622 from Rs 19,346. The annual increase of the expected 4% hike will be Rs 27,312. Similarly, minimum basic salary of Rs 18,000 will bring a DA hike of Rs 720 per month, taking the allowance to Rs 6,840 from Rs 6,120. The annual increase would be around Rs 8,640.

Coupled with the 3% hike of January 2022, which benefited over 47 lakh Central government employees and over 68 lakh pensioners, a 4% hike will be a massive boost.

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