7th Pay Commission DA Hike: The Narendra Modi government at the Center can increase DA and DR by 3% this time. DA (Dearness Allowance) i.e. dearness allowance is given to government employees. At the same time, pensioners get DR i.e. dearness relief.
Dearness allowance for central government employees was increased by 50% from January 1, 2024. With DA reaching 50%, many allowances were increased in the last few months. This also includes House Rent Allowance (HRA). Usually the government announces an increase in DA and DR in March and September every year, but this increase is considered effective from January and July.
The basis for DA hike is the All India Consumer Price Index (AICPI). Earlier, DA was calculated using the Consumer Price Index with a base year of 2001. However, from September 2020, the government has started using a new Consumer Price Index with a new base year of 2016 to calculate DA.
New formula for calculation of DA
For Central Government Employees:
DA% = [(Average of last 12 months of AICPI (Base year 2001 = 100) – 115.76)/115.76] x 100
For Public Sector Employees:
DA% = [(Average of last 3 months of AICPI (Base year 2001 = 100) – 126.33)/126.33] x 100
There has been an increase of 2.6 points in CPI-IW from December 2023 to June 2024, increasing from 138.8 to 141.4. In this way, the percentage of increase in DA is expected to increase from 50.28% to 53.36%.
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Salary will increase by this much
Central government employees with basic pay of Rs 18,000:
The 3% DA hike after the revision in July will increase their total salary by Rs 540. This will increase their annual salary by Rs 6,480.
Central government employees with basic pay of Rs 56,900:
After DA revision, monthly salary will increase by Rs 1,707 and Rs 20,484 annually.
With DA and DR crossing the 50% mark, there is speculation that DA and DR will be merged with the basic salary. This will increase the basic pay of lakhs of central government employees and pensioners. However, the government has not yet made any announcement on this revision of DA and DR.
