7th Pay Commission: Central Government Employees Likely to Get DA Hike Soon
7th Pay Commission: Central government employees eagerly awaiting an increase in their Dearness Allowance (DA) may receive good news soon. Reports indicate that a final decision on the DA hike is expected during the upcoming Cabinet meeting, chaired by Prime Minister Narendra Modi. These meetings are typically scheduled on Wednesdays.
Expected DA Hike for Government Employees
According to sources, the government is likely to announce a 2% increase in DA, raising it from 53% to 55%. The Dearness Allowance is revised twice a year to help employees manage rising inflation. It is a key component of their take-home salary and is calculated as a percentage of the basic pay.
For example, if an employee has a base pay of ₹1 lakh, a DA of 55% would translate to ₹55,000. This adjustment ensures that salaries keep pace with inflation and cost-of-living changes.
Impact of the DA Hike on Salaries
A 2% increase in DA will provide financial relief to employees across various pay levels.
- An entry-level Multi-Tasking Staff (MTS) employee with a basic pay of ₹18,000 currently receives ₹9,540 as DA (53%).
- With the proposed 2% hike, the DA would increase to ₹9,900, adding ₹360 to their salary.
- If the hike were 3%, the DA would rise to ₹10,080, adding ₹540 instead.
This increase in DA will be effective from January 1, 2025. Employees will receive arrears based on the additional amount they are entitled to from the start of the year.
Previous DA Hike and Future Expectations
The last revision in July 2024 saw a 3% hike, raising DA from 50% to 53%. The upcoming increase will further boost salaries, benefiting thousands of government employees and pensioners.
For pensioners, the hike in DA is referred to as Dearness Relief (DR), ensuring that retirees also receive financial benefits in line with inflation adjustments.
With the final decision expected soon, government employees can look forward to an official announcement that will positively impact their earnings.
