7th Pay Commission: There is good news for central government employees. The central government may announce a 4 percent DA increase in March. After 4 percent increase, Dearness Allowance (DA) and Dearness Relief will increase to 50 percent.
7th Pay Commission: There is good news for central government employees. The central government may announce a 4 percent DA increase in March. After the 4 percent increase, Dearness Allowance (DA) and Dearness Relief will increase to 50 percent.
The 12-month average of the Consumer Price Index for Industrial Labor (CPI-IW) stood at 392.83. That is, DA is sure to increase to 50.2 percent. DA is calculated on your basic salary. The limit of increase in DA and Dearness Relief (DR) is decided by the Central Government on the basis of all India CPI-IW data. DA is given to government employees, while DR is given to pensioners. DA and DR increase twice a year – January and July.
In the last increase in October 2023, DA was increased by 4 percent to 46 percent. Considering the current inflation rate, the next DA hike is expected to be 4 percent. According to official figures, there are 47.58 lakh central government employees and 69.76 lakh pensioners. These employees and pensioners will benefit after the DA increase.
Formula for Central Government employees:
Dearness Allowance Percentage = ((Average of AICPI (base year 2001=100) for the last 12 months -115.76)/115.76) *100 (Here AICPI stands for All India Consumer Price Index.)
Formula for Public Sector (Central Government) Employees:
Dearness Allowance Percentage = ((Average of AICPI (base year 2016=100) for last 3 months -126.33)/126.33) *100
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