7th Pay Commission: Central Govt Employees Likely To See DA Hike Ahead Of Diwali. Here's How Much Your Pay May Rise

7th Pay Commission: While the Centre is anticipated to make the announcement in October, there has been no official confirmation yet. Last year, the DA hike was declared in the first week of October

7th Pay Commission: Employees of the central government are eagerly awaiting an official announcement regarding a dearness allowance (DA) hike, expected to raise their salaries. While the Centre is anticipated to make the announcement in October, there has been no official confirmation yet. Last year, the DA hike was declared in the first week of October.

According to news reports, the government is likely to announce a 3-4 per cent DA hike just ahead of Diwali. Once implemented, the salary of entry-level central government employees with a basic pay of Rs 18,000 per month could see an increase ranging from Rs 540 to Rs 720 per month, effective retroactively from July 1, 2024.

For employees earning Rs 30,000 per month, with a basic pay of Rs 18,000, the current DA stands at Rs 9,000, or 50 per cent of the basic pay. A 3 per cent hike would increase the DA to Rs 9,540, while a 4 per cent hike would raise it to Rs 9,720 per month.

Dearness allowance is provided to government employees to help offset the impact of inflation, while dearness relief (DR) is extended to pensioners. Both DA and DR are revised twice a year, in January and July. Currently, over one crore central government employees and pensioners are receiving a 50 per cent dearness allowance.

The last revision occurred in March 2024, when the central government raised the DA by 4 per cent, bringing it to 50 per cent of the basic pay. The DR for pensioners was also increased by 4 per cent.

The DA and DR hikes are determined based on the percentage increase in the 12-month average of the All India Consumer Price Index (AICPI) for the period ending June 2022. Although the allowances are revised on January 1 and July 1 each year, announcements are typically made in March and September.