7th Pay Commission ensures 4% hike in DA

There are expectations that the long-awaited announcement might be unveiled by October end


Amid the festive season, the Central Government may be preparing to raise the dearness allowance (DA) and dearness relief (DR). The raise will be effective for the Central government employees in accordance with the 7th Pay Commission.

According to reports in the media, there is speculation that the Central government is contemplating a 4 per cent increase in DA, which could potentially elevate the existing 42 per cent to 46 per cent. The approval for the heightened DA will be sought during a cabinet meeting, following which employees will see their pay going up.

This means that for a basic salary of Rs 56,000 with a new DA of 46 per cent, the monthly increase amounts to Rs 25,760, compared to the current DA of 42 per cent, which is Rs 23,520. The raise will result in a monthly increase of Rs 2,240 and annually, Rs 26,880.

Similarly, for a basic salary Rs 18,000 with a new DA of 46 per cent, the monthly increase would be Rs 8,280, while the current DA at 42 per cent is Rs 7,560, resulting in a monthly increase of Rs 720. Consequently, the annual increase for this scenario would be Rs 8,640.

While no official statement has been released as of now, it is expected that the much-anticipated announcement may come at the end of this month.

DA and DR are government-provided allowances to public-sector employees and pensioners, with the former benefiting employees and the latter benefiting central government pensioners. These allowances are revised every six months to help staff deal with inflation.

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