7th Pay Commission: Check DA Hike Calculation, Expected Increase in Salary and Announcement Date

Central government employees and pensioners anxiously anticipate the government's announcement of the Dearness Allowance (DA) and Dearness Relief (DR) hike. The Union Cabinet will decide on this matter at a meeting that the Prime Minister will preside over.

The expected time for the DA/DR hike decision hasn't been made official, though.

DA Hike Announcement Date:

The DA/DR hike is typically announced in March and September. The festival season has already begun in September, so central government employees anticipate receiving the DA raise announcement later this month.

How Much DA Hike Can be Expected?

The government is expected to quickly increase the DA rate from 34% to 38%. The DR rate for retirees is likewise expected to increase in a similar way.

How is the DA Hike Calculated?

Every six months, the government usually updates the DA/DR rate. This is done to make up for the monthly salary/pension wealth's reduced purchasing power brought on by inflation. Both Central Government employees and retirees gain from the DA/DR rate.

The formula recommended by the 7th Pay Commission is used to compute DA/DR. The All-India Consumer Price Index for Industrial Workers (CPI-IW), published by the Labour Bureau (Shimla), Ministry of Labour and Employment, serves as the current benchmark for DA regulation. 

CPI-IW is used to determine DA for workers in the industrial sectors, as well as to fix and amend minimum wages in scheduled employment.