7th Pay Commission: The central government can announce an increase in dearness allowance (DA) and inflation relief (DR) on Wednesday 12 March. 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 to increase dearness allowance. The government increases the dearness allowance of central employees 2 times a year on 1 January and 1 July. Whenever the government announces, it is considered to be applicable from the same date.
How much government will increase dearness allowance
If media reports are to be believed, the government will increase dearness allowance before Holi by just 2 percent. According to inflation rate, DA 2% is expected to increase in the salary of central government employees. This will increase 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 of 3%, which was considered applicable from 1 July 2024. After that increase, the DA increased from 50% to 53%.
How much salary will increase due to increasing 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 monthly. At present, it is getting Rs 9,540 according to 53% DA, but it will be Rs 9,900 when it increases 2%. If the DA is increased by 3%, the total DA will increase by Rs 540 to Rs 10,080. This will directly benefit in the salary of the employees.
How is DA fixed?
The calculation of dearness allowance (DA) and inflation relief (DR) is extracted at an average of the last 12 months of the Consumer Price Index (AICPI). The central government revises DA on 1 January and 1 July every year, but it is usually announced in March and September. In 2006, the government adopted a new formula for DA’s calculation, so that it could 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 salary and pension of government employees. The period of the 7th Pay Commission ends on 31 December 2025. The 8th Pay Commission will be applicable from 2026. However, the government has not released its conditions and members’ information yet.
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