7th Pay Commission: Good news for govt employees, DA may hike by 3-4% in July

The upcoming month of July may bring a potential DA hike for central government employees.

7th Pay Commission: The anticipated month of July may bring potential good news for central government employees, as the dearness allowance (DA) may witness an increase of 3 to 4 percent. The government contemplates raising the DA from its current level of 45 percent to a modest 46 percent. Should this decision come into effect, it would naturally lead to an increase in employees’ salaries.

7th Pay Commission: Good news for govt employees, DA may hike by 3-4%

The recently released figures of the Employment Index of Consumer Price Index (EICPI) for April have caught the attention of various media outlets. Speculation has arisen, suggesting that employees might observe a surge in their remuneration. According to the reports, the dearness allowance might see a 3 percent rise. However, we must await the figures for May and June, which will unveil the precise extent of the increase in DA, slated for July.

If the calculations and predictions hold true, a 3 percent increase in dearness allowance would raise it to 45 percent. However, if the figures become more explicit, the increment might scale up to 4 percent, consequently reaching 46 percent. This favorable adjustment in DA will benefit approximately 48 lakh employees and 69 lakh pensioners.

The future trajectory of the dearness allowance hinges on the forthcoming ICPI figures for May and June. If they display promising trends, there exists a possibility of witnessing a 3 to 4 percent surge in the dearness allowance. Consequently, with a 4 percent increase, the DA will ascend to 46 percent. To illustrate, consider an employee with a monthly salary of Rs 18,000. With a 42 percent DA, the dearness allowance stands at Rs 7,560. However, with a 46 percent DA, it reaches Rs 8,280.

Hence, this adjustment would result in a monthly salary increase of Rs 720.

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