7th Pay Commission: The central government may give the gift of increase in Dearness Allowance (DA) and Relief (DR) to government employees and pensioners under the 7th Pay Commission before Diwali. Know how much DA hike can be got and when it will be implemented.
7th Pay Commission: The government may soon give the benefit of Dearness Allowance (DA) and Dearness Relief (DR) increase to central government employees and pensioners. This may be the last DA hike under the 7th Pay Commission, as the government is planning to implement the 8th Pay Commission from January 1, 2026. Let us know when government employees can get the gift of DA hike and how much increase is likely to be there.
When will DA hike be available?
The government revises DA twice a year. First time in January and second time in July. The new rate will be applicable from July 1. But, usually it is announced in September or October. Employees get arrears for July, August and September.
Government employees will hope that the government announces DA hike in September before the festive season. This time Diwali is on October 20. In such a situation, the government can give a Diwali gift to government employees and pensioners by adding arrears with the salary of September.
How is DA decided
DA is calculated on the basis of Consumer Price Index (CPI-IW) of Industrial Workers. The Labor Bureau releases this data every month. The government decides DA under the formula of 7th Pay Commission using the average CPI-IW of the last 12 months.
At present DA is 55%. According to media reports, it is likely to be increased by 3% to 4%. If the government approves an increase of 3%–4%, then DA can reach 58%–59%.
How much will be the benefit?
If DA increases by 3%, the monthly income of an entry-level employee with a basic salary of ₹18,000 will increase by about ₹540. Similarly, pensioners with a basic pension of ₹9,000 will get a benefit of ₹270. However, it will completely depend on the government how much DA increases. The cabinet can take a final decision on this in September–October.
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