DA Hike Likely Next Month; Check How Much Salary Will Rise For Central Govt Employees

7th Pay Commission Latest Update: As inflation continues to rise in the country, government employees are likely to get a hike in dearness allowance (DA) by the end of this month. The DA of government employee is revised twice a year — January and July based on the All-India Consumer Price Index (AICPI). This time, given the AICPI hovering over 127 points, DA hike is likely to be around five per cent which means that the total DA could reach up to 39 percent , according to media reports.Also Read – 7th Pay Commission: How Much Salary Will Increase For Govt Employees After Possible DA Hike in July?

In January, under the 7th Pay Commission the central government hiked the DA for its employees to 34 per cent, from the earlier rate of 31 per cent. The retail inflation, based on Consumer Price Index in April stood at an eight-year high of 7.79 per cent. Also Read – 7th Pay Commission: Uttarakhand Hikes Dearness Allowance of State Govt Employees to 31% From July 1

Prior to that, In July 2021, Centre has hiked the DA and dearness relief (DR) for the central government employees and pensioners, respectively, to 28 per cent from 17 per cent after a long pause. While, DA is given to government employees, while dearness relief (DR) is for pensioners. Also Read – 7th Pay Commission: 8th Pay Commission For Central Government Employees Soon? Know Here

Later in October 2021, the central government again hiked the DA by 3 per cent. Then, the DA for the central government employees rose to 31 per cent, effective from July 2021.

DA Related Allowances Hike

Amidst the speculation on a probable hike in DA in the month of July, media reports are also rife that 4 other allowances that are decided based on the DA level, may also increase. Here’s the list.

• The DA is proportional to the base wage. As a result, a raise in DA will also raise central government employees’ monthly provident fund (PF).
• The gratuity amounts of the employees will also be increased due to the hike in DA.
• The hike in dearness allowance has also cleared the path for hike in Travel/Transport Allowance and City Allowance of the employees.
• There have also been speculations in the media that the government is contemplating a hike in the HRA as the DA has been hiked.

All-India Consumer Price Index

The All-India CPI-IW for April, 2022 increased by 1.7 points and stood at 127.7 (one hundred twenty seven point seven). On 1-month percentage change, it increased by 1.35 per cent with respect to previous month compared to an increase of 0.42 per cent recorded between corresponding months a year ago, showed a Ministry of Labour and Employment data. The April AICP Index has fuelled further speculation that DA could be hiked by upto 5 percent which means that the total DA could reach upto 39 percent.