# 7th Pay Commission: Good news for central employees, the government may increase DA next month, salary will increase so much

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In January this year, the government announced an increase in dearness allowance and dearness relief under the 7th Pay Commission. DA and DR of employees and pensioners increased by 3 percent.

There is good news for central government employees. From next month, the government can make a big announcement regarding the increase in the salary of central employees. Dearness Allowance of Central Government Employees and Pensioners in the next month i.e. July (Dearness Allowance- DA Hike) may increase. According to media reports, the central government may implement another DA hike for government employees on July 1. Explain that based on the All India Consumer Price Index (AICPI), the government revises the DA in January and July.

In January this year, the government announced an increase in dearness allowance and dearness relief under the 7th Pay Commission. DA and DR of employees and pensioners increased by 3 percent.

### DA can increase so much

In April, May, and June, if the AICPI is above 126, the DA can increase by up to 4 percent. The AICPI was 125.1 and 125 in January and February respectively, while it increased to 126 in March. Now if AICPI stays at that level then DA is expected to increase by 4%.

At present, government employees get 34% DA on their basic pay. If the DA hike of 4 percent is implemented, they will get a 38 percent dearness allowance over their basic salary. Dearness Allowance (DA) is given to government employees, while Dearness Relief (DR) is given to pensioners.

### How much will the salary increase after increasing DA?

Central government employees will get a 38 percent dearness allowance calculated by multiplying the existing rate of DA with the basic salary of the employee. Explain that this calculation is done against the salary of an employee whose basic salary is Rs 18,000. At present, the employee is getting a DA of Rs 6,120 at the rate of 31 percent DA. If DA is increased by 4 percent in July, then the employee will get DA of Rs 6,840. This means that after the latest DA hike, Rs 720 will increase.