Government to raise central employees’ DA, effective July, providing benefits. Big news!

7th Pay Commission DA Hike: Modi Government to Increase Salary of Employees Again

Summary:

• Modi government is set to increase the salary of central government employees once again.
• Dearness Allowance (DA) hike will be implemented in the month of July.
• The final calculation for DA will be based on the AICPI Index data for July.
• Expected increase in DA is around 4 percent.
• Official announcement for the DA hike may come in September or October.
• If increased by 4 percent, the DA received by employees will reach 46 percent.

7th Pay Commission:

The month of July brings good news for central government employees as the Modi government plans to increase their salaries once again. The exact dearness allowance (DA) hike will depend on the AICPI Index data for July. This increase is in line with the recommendations of the 7th Pay Commission.

Data for the Month of July Will Be Released:

The AICPI Index data for July will be the final piece of information to determine the calculation of the DA. Based on this data, it will be determined whether the employees’ DA will increase by 4 percent or possibly more. This data plays a crucial role in deciding the salary hike.

Announcement Expected in September or October:

While the next revision for DA is scheduled for July 2023, it is anticipated that the official announcement regarding the hike may be made in September or October. Employees are eagerly awaiting the confirmation of the increase in their salaries.

Expected Increase of 4 Percent:

It is widely speculated that the government will increase the DA by 4 percent this time as well. As of May 2023, the AICPI Index figure stands at 134.7, reaching 45.58 percent. The figure for June is yet to be released. However, the round figure of 45.58 percent confirms a minimum increase of 4 percent in DA.

Possible 46 Percent DA:

Previously, the government had increased DA and DR by 4 percent in the half-year from January to July, resulting in a 42 percent DA for employees. If the government follows a similar pattern this time, the DA received by employees will reach 46 percent.

DA as Salary Structure:

The dearness allowance is an essential component of the salary structure for government employees. It is increased based on the inflation rate of the country. Both employees’ DA and pensioners’ DR are adjusted according to the inflation rate in the country.