7th Pay Commission: A good news is coming out for the central government employees working under the Seventh Pay Commission. The government may soon announce an increase in dearness allowance (DA).
7th Pay Commission: A good news is coming out for the central government employees working under the Seventh Pay Commission. The government may soon announce an increase in dearness allowance (DA). Looking at past trends, it is most likely that the central government will announce the next increase in DA/DR rate in September 2025. According to several media reports, the next DA/DR hike is expected to be around 3 percent. After this increase, it will increase to 58 percent. Let us tell you that earlier in March, the Union Cabinet headed by Prime Minister Narendra Modi approved a 2% increase in Dearness Allowance (DA) and Dearness Relief (DF) for central government employees and pensioners.
How much will the DA increase
Dearness allowance is calculated on the basis of All India Consumer Price Index (AICPI) and it has registered a steady increase in recent months. This is the reason why employees can soon get the benefit of salary hike. At present, employees are getting 50% DA and after the upcoming hike, it can go up to 54%. This will increase the monthly income of lakhs of employees and pensioners and increase their purchasing power.
How much will the salary increase
On the minimum basic salary of Rs 18,000, a 3 percent DA hike will add another Rs 540. This will take the total minimum salary to Rs 28,440 at 58 percent DA under the 7th Pay Commission. Similarly, a 3 percent DR hike will increase the minimum basic pension of Rs 9,000 by Rs 270, taking the total minimum pension to Rs 14,220 at the rate of 58 percent.
DA revision happens twice a year
The government usually revises DA twice a year i.e. in January and July. This time the increase may be announced in early September and its effect will be considered effective from July 2025. This means that the employees will not only get the increased DA, but will also get the arrears of the previous period. This will strengthen the pockets of the employees during the festive season and will also increase consumption in the market.
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