7th Pay Commission: Cabinet may approve 4% DA hike today, here is how much salary will increase

New Delhi: 7th Pay Commission DA hike Latest update-- The centre may today give respite to lakhs of central government employees who have been waiting for announcement on hike in Dearness Allowance (DA). Media reports are suggesting that the big announcement might come today. An important cabinet meeting might take place today, i.e September 28, during which the government might take up DA hike issue for discussion and deliberation. Reports are suggesting that the big announcement on DA hike might come after the cabinet meeting deliberates on the quantum of DA hike, with the probability being a 4 percent DA hike.

The Dearness Allowance of central government employees is revised twice a year. The first is given from January to June, while the second comes from July to December.

If latest media reports are to be believed, Dearness Allowance  of the employees could by hiked by 4 percent. This means the total DA could reach upo 38 percent. The All-India CPI-IW for the month of June has hinted at a hike in DA this month. Along with the Dearness allowance hike, employees may also get arrears for the months of July and August.  

The Dearness Allowance of central government employees is revised twice a year. The first is given from January to June, while the second comes from July to December.

The All-India CPI-IW for April, 2022 increased by 1.7 points and stood at 127.7 (one hundred twenty seven point seven). On 1-month percentage change, it increased by 1.35 per cent with respect to previous month compared to an increase of 0.42 per cent recorded between corresponding months a year ago, showed a Ministry of Labour & Employment data. As per latest ministry reports, the AICPI figures for May is at 129. Meanwhile, the AICP Index for the month of June is hinting at certainity that the DA would be higher. The AICPI figures for June is at 129.

The first increase in dearness allowance for the year 2022 was announced in March. In December 2021, the AICPI figure stood at 125.4. But, in January 2022, it declined by 0.3 points and fell to 125.1. The All-India CPI-IW for February, 2022 decreased by 0.1 points and stood at 125.0 (one hundred twenty five). On 1-month percentage change, it decreased by 0.08 per cent with respect to previous month compared to increase of 0.68 per cent recorded between corresponding months a year ago. For the month of March, there was a jump of 1 point. The AICPI index figures for March stood at 126.

It may be recalled that the Union Cabinet had on March 30 hiked Dearness Allowance (DA) and Dearness Relief (DR) by 3 per cent to 34 per cent to compensate for the price rise, benefitting over 1.16 crore central government employees and pensioners.

The additional instalment is effective from January 1, 2022. The increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.