7th pay commission: The government may soon give benefits of Dearness Allowance (DA) and Dearness Relief (DR) to the central government employees and pensioners. This may be the last DA Hike under the 7th Pay Commission, as the government is planning to implement the 8th Pay Commission from 1 January 2026. Let us know how long government employees can get the DA Hike gift and how much it is likely to increase.
When will you get DA Hike?
The government revises DA twice a year. First time in January and second time in July. The new rate will be applicable from July 1. However, it is usually declared in September or October. Employees get arrears for July, August and September.
Government employees will expect that the government announce the DA Hike in September before the festive season. This time Diwali is on 20 October. In such a situation, the government can add arrears with the salary of September and give Diwali gift to government employees and pensioners.
How to decide da
DA is calculated based on the consumer price index (CPI-IW) of industrial workers. Labor Bureau releases this data every month. The government determines DA under the formula of the 7th Pay Commission using the average CPI-IW of the last 12 months.
Currently DA is 55%. According to media reports, it is expected to increase from 3% to 4%. If the government approves an increase of 3% -4%, DA can reach 58% -59%.
How much will be the benefit?
If DA increases 3%, the monthly income of an entry-level employee with ₹ 18,000 will increase by about ₹ 540. Similarly, pensioners with ₹ 9,000 basic pension will get a profit of ₹ 270. However, it will completely depend on the government how much DA increases. The cabinet can take a final decision in September -October.