7th Pay Commission: As the festive season has started, the Central government employees are eagerly waiting for a hike in their salary. They are eagerly waiting for the announcement of dearness allowance hike in October as a part of 7th pay commission. Right now, the DA stands at 50% of the basic pay, after a 4% increase in March 2024. At this time, it is expected that the Centre could hike 4% dearness allowance for the Central government employees.
Moreover, the government is expected to announce the DA hike in October ahead of Diwali as it raised the DA in the first week of October last year.
Why Centre grants DA hike?
The Central government hikes dearness allowance for the employees to help them cope with inflation by adjusting their salaries based on the Consumer Price Index. Right now, over one crore central government employees and pensioners benefit from this allowance, which is vital in offsetting rising living costs.
Here's how DA hike is calculated
The DA hike formula for the Central government employees is based on the average of the All India Consumer Price Index, or AICPI, for the previous 12 months, making it a crucial aspect of salary calculations for government employees.
Check how much salary could increase.
The DA announcement from the Centre helps government employees cope with inflation by adjusting their pay following the Consumer Price Index. For example, if an employee with a basic salary of Rs 18,000, currently receiving Rs 9,000 as DA, could see their monthly allowance increase by Rs 540 if a 3% hike is implemented.
If the Centre hikes DA by 4%, then it would raise the DA to Rs 9,720, reflecting the government's efforts to ease the burden of rising living costs.
Latest Business News
