New Delhi: Central government is expected to hike the dearness allowance (DA) of employees next month, in what could be good news for all workers under the 7th Pay Commission. With the hike in the DA, the in-hand salaries of the central government are all set to increase. According to the media reports, the big update on the DA hike could come in July 2022, bringing cheer to central government employees. Besides the DA for central government employees, the government could also increase dearness relief for lakhs of central government pensioners. 


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The Central government usually hike the dearness allowance and dearness relief for employees and pensioners two times a year, under the 7th Pay Commission. The first DA increase is usually increased in the month of January while the second price hike takes place in the month of July. 


Early this year, the government increased the DA and DR for central government employees and pensioners by 3%. This time too, the government employees are expecting the government could increase the DA and DR by at least 3%. 


How Is the DA Hike Calculated?


The DA hike is usually based on All-India Consumer Price Index (AICPI). In the months of January, February and March 2022, AICPI stood at 125.1, 125 and 126, respectively. According to media reports, if the AICPI remains more than 126 in April, May and June, the government could increase the DA by 4%. The AICPI numbers for the months of April, May and June are yet to come. Also Read: RBI to go fast with rate hikes in 2022, slow the next: Poll


By How Much DA will increase? 


As of now, the DA for central government employees stands at 34% of their basic salary. So, if the government increased the DA by another 4%, the DA will stand at 38% for July 2022 and upcoming months till January 2023. Also Read: Google plans merger of Duo, Meet apps into one platform: 5 things to know