7th Pay Commission DA hike: Government employees may soon get a 4% hike!

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The Central Government may soon announce the revised Dearness Allowance (DA) and Dearness Relief (DR) rates for Central Government employees and pensioners. The recommendations of the Seventh Pay Commission are used to determine the monthly salary, pension, and DA/DR rates of central government employees and pensioners.

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It is estimated that the DA/DR rate will increase to 38 percent from the current 34 percent. The announcement will be made, after a meeting of the Union Cabinet, chaired by Prime Minister Narendra Modi. As per other reports, the file for the DA/DR hike has already been submitted to the Union Cabinet Office; Now only final approval is needed.

In general, the DA/DR case is always approved by the government. The DA/DR hike is now important for central government employees and pensioners as inflation has already exceeded the RBI estimates.

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DA/DR hike calculation:

Here is an example of how salary and pension will increase if DA/DR rates are increased from 4% to 38%:

DA/DR at 38% if basic pay/pension is Rs 25,000 9500 is equal to Rs. DA/DR amount @ 34% is Rs.8500. As a result, the salary will increase by Rs 1000 (Rs 950- Rs 850).

If the basic pay/pension is Rs.35,000 then the DA/DR at the rate of 38% is Rs.13,300. The DA/DR amount at the rate of 34 percent is Rs 11,900. As a result, the salary will increase by Rs 1400 (13,300 - 11,000).