7th Pay Commission: 3% DA Hike For Government Employees Soon, Salaries Set To Rise By 50%

Over one crore central government employees and pensioners are eagerly awaiting the announcement of a much-anticipated dearness allowance (DA) hike. As per reports, the Union Cabinet is likely to approve a 3% DA hike in today's meeting. If approved, the increase will be reflected in employees' October salaries along with arrears for the last three months. This hike will bring the total DA to 53%.

7th Pay Commission: How is the DA Hike Calculated?

The DA hike is determined by the percentage increase in the 12-month average of the All-India CPI-IW (Consumer Price Index for Industrial Workers). While the central government updates the DA annually on January 1 and July 1, the announcements typically come in March and September/October.

7th Pay Commission: Expected July 2024 DA Hike

According to expert projections, the dearness allowance will likely increase by 3% for July 2024, raising it from 50% to 53%. Based on AICPI data up to May 2024, the DA score has already reached 52.91%. The final calculation will be made once June's figures are received.

7th Pay Commission: DA Hike Could Reach ₹1,00,170

With the DA expected to rise to 53%, an employee in Pay Band 1 (₹5200 to ₹20200) with Grade Pay between ₹1800 and ₹2800 (Levels 1 to 5) currently earning ₹31,500 will see an increase. At 53%, the total dearness allowance for six months will be ₹1,00,170, compared to ₹94,500 at the current 50%. This translates to a salary increase of ₹945 per month and ₹5670 over six months.

7th Pay Commission: Impact of DA Hike on Salary

Let's break down the salary impact after the DA hike:

• Basic Salary: ₹31,500
• Current DA (50%): ₹15,750/month
• Total DA for 6 months (50%): ₹94,500
• New DA (53%): ₹16,695/month