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7th Pay Commission: DA Hike to Be Announced in August, Basic Salary Will Increase This Much

The Dearness Allowance is updated twice a year, it should be noted. While the second is offered from July to December, the first is offered from January to June.

Updated on: 17 July, 2022 4:34 PM IST By: Binita Kumari
Employees will also get the arrear of the difference in July and August if the new DA rise takes effect on July 1, 2022.

Here is a major update for Central Government employees who are waiting for a pay raise. According to media reports, they will see an increase in their Dearness Allowance starting next month. The announcement regarding the DA increase is likely to be made by the central government during its upcoming cabinet meeting, which is slated for the first week of August.

Why should workers in the central government receive a pay raise? The most important factor is the most recent All-India CPI-IW data. The AICP Index, one of the key variables used to calculate the DA, provides a signal as to whether the DA of the central government will rise.

According to rumors, the Dearness Allowance may increase by 4% in August. This indicates that after the increase, the overall DA will be 38 percent. According to media sources, the administration may announce a DA increase around the third week of August. The cabinet meeting is anticipated to happen on August 3. These are merely the earliest conjectures; the workers must wait till an official declaration is made regarding the situation.

The Dearness Allowance is updated twice a year, it should be noted. While the second is offered from July to December, the first is offered from January to June. 

The decision could be taken during the forthcoming Cabinet Meeting in the first week of August, according to a report by Zee Business. Employees will also get the arrear of the difference in July and August if the new DA rise takes effect on July 1, 2022.

The current DA increase for central government employees is 34%. The DA will be 38% after the hike. The annual DA increase on a basic income of Rs. 18,000 is Rs. 8640.

Calculation on minimum basic salary:

Basic Salary – Rs 18,000

Current DA at 34% – DA hike by Rs 6120 per month

New DA at 38 per cent – DA hike by Rs 6840 per month

DA Increase – Rs 6840- 6120 = Rs 720 per month

Annual Salary increase Rs 720X12= Rs 8640

Calculation on maximum basic salary:

Basic Salary – Rs 56900

New DA at 38% – DA hike by Rs 21622 per month

Current DA at 34 per cent – 19346 per month

DA Increase – 21622-19346= 2276 per month

Annual Increase in DA – Rs 2276 X12= Rs 27,312

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