7th Pay Commission: AICPI Index Indicates a 4% DA Hike? Check Latest Updates

The second Dearness Allowance (DA) revision for central government employees this year is predicted to be made public the following week. Earlier sources had stated that the DA rise would be revealed by July 31 (today), however more recent reports indicate that the announcement would occur around August 3.

A 4 percent DA raise is anticipated this time, according to the most recent reports and indicators from the All-India Consumer Price Index (AICPI) statistics. Although a higher figure of 5 or 6 percent has also been predicted in the past, the actual percentage is probably closer to the 4-percent range. Early in the year, the central government employees had already received a 3 percent DA increase, bringing the overall percentage up to 34 percent.

For 18 months, DA increases were suspended due to the Covid-19 pandemic. But when it was relaunched, the government gave a one-time boost of 11%, bringing the percentage to 28%. In October 2021, a 3 percent increase brought the percentage to 31 percent; as of now, it is 34 percent. This percentage will increase to 38 percent for central government employees with the most recent increase, which is predicted to be 4%.

The All-India Consumer Price Index (AICPI), which has been increasing since February of this year, saw a significant increase of 1.3 points in May, bringing it to 129, which sparked discussion about a 6 percent increase if the trend continued in June. AICPI increased by 0.2 percent in June, nonetheless, reaching 129.2. Analysts see this data as indicating a 4 percent increase.

How much increase can government employees expect?

A 4 percent increase in the DA will result in annual increases of Rs 8,640 for a basic salary of Rs 18,000 and Rs 27,312 for a basic salary of Rs 56,000. Employees in the central government currently receive DA of Rs 6120 per month, or 34 percent, of their basic wage of Rs 18,000. This amount is estimated to rise to Rs 6,840 per month, or Rs 720 per month and Rs 8,640 annually in DA increases.

For central government employees earning a base salary of Rs 56,000, the DA they currently receive is Rs 19,346 per month; however, with the expected DA boost, that amount will rise to Rs 21,622 per month. This will result in an increase each year.