7th Pay Commission : The central government can announce an increase in dearness allowance (DA) and dearness relief (DR) on Wednesday, March 12. This decision of the government will benefit more than 1.2 crore government employees and pensioners.
A cabinet meeting is to be held on Wednesday, after which a decision can be taken on increasing dearness allowance. The government increases the dearness allowance of central employees twice a year on January 1 and July 1. Whenever the government announces it, it is considered to be applicable from these dates.
How much will the government increase dearness allowance
If media reports are to be believed, the government will increase Dearness Allowance (DA) by only 2% before Holi. According to the inflation rate, DA is expected to increase by 2% in the salary of central government employees. This will increase the dearness allowance from 53% to 55%. However, the final decision on this will be taken in the cabinet meeting to be chaired by Prime Minister Narendra Modi on Wednesday. Earlier in October 2024, central government employees got a DA hike of 3%, which was considered effective from July 1, 2024. After that increase, DA increased from 50% to 53%.
How much will the salary increase due to increase in DA?
If the dearness allowance (DA) increases by 2%, then the salary of an employee with a basic salary of Rs 18,000 will increase by Rs 360 per month. Currently, he is getting Rs 9,540 as per 53% DA, but after increasing it by 2%, it will become Rs 9,900. If DA is increased by 3%, then the total DA will increase by Rs 540 to Rs 10,080. This will directly benefit the salary of the employees.
How is DA decided?
Dearness Allowance (DA) and Dearness Relief (DR) are calculated on the average of the last 12 months of the Consumer Price Index (AICPI). The central government revises DA every year on 1 January and 1 July, but it is usually announced in March and September. In 2006, the government adopted a new formula for calculating DA, so that it can be assessed correctly.
When will the 8th pay commission come?
In January 2025, the central government announced the 8th Pay Commission, which will revise the salaries and pensions of government employees. The period of the 7th Pay Commission is ending on 31 December 2025. The 8th Pay Commission will be implemented from 2026. However, the government has not yet released its terms and members.
