7th Pay Commission: Increase in DA! Will you get 18 months' arrears soon? Click to know!
Central government employees are expected to hear some good news as the DA hike and 18 months arrears of salary may be announced by the central agencies soon.
According to media reports, the central government can make a formal announcement of the increase in Dearness Allowance (DA) next month. It is to be noted that no formal announcement regarding the DA hike has been made by the Center yet.
The AICP index, which plays a key role in deciding the DA hike percentage for central government employees, suggests that it could be increased by at least 4 percent. According to media reports, the DA percentage of employees is being increased from 34 to 38 percent.
It also said that the recent All India Consumer Price Index data clearly indicates why the 4 percent hike will be greenlighted this time for DA of central government employees. The announcement will happen soon.
According to reports, the DA hike under the 7th Pay Commission is expected to be implemented for government employees from January 1, 2022, which will lead to a huge increase in salaries. The minimum basic pay can be expected to increase by Rs 8,640 annually.
For a basic salary of Rs 18,000, a central government employee currently gets Rs 6,120 per month as DA on a 34 percent basis. With the new figure, this amount will become Rs 6,840 per month. This means an increase of Rs 720 in monthly DA, i.e. Rs 8,640 per annum.
The DA of central government employees is revised twice every year. According to the reports, one revision is done in January while the other is done in July. DA and DR revisions can often provide a huge salary hike for central government employees.
Reports also suggest that the central government may also resolve the issue of pending DA arrears, following which the central government employees will receive Rs 2 lakh pending dues in one go.