7th Pay Commission: Govt Employees to Get 41% DA Hike According to Current AICPI; Base Pay Calculation Inside

The All-India Consumer Price Index (AICPI) figures that the Labor Ministry releases on January 31 may give a hint about the upcoming Dearness Allowance (DA) hike. The only factor used to calculate the daily stipend for central workers is the AICPI index.

The only factor used to calculate the daily stipend for central workers is the AICPI index. The index covered 88 centers as well as the entire country. The last working day of every month marks the release of the AICPI.

The AICPI numbers for November 2022 were 132.5. According to media reports, if the future index (for December 2022) maintains the same, the dearness allowance would increase by 3%. As a result, the DA will rise to 41% from its current 38 percent.

What will be the minimum base pay with a 41% DA Hike?

Taking a minimum salary at Rs 18,000 then:

If the DA is hiked to 41% (Rs 7,380/month)

Current 38% DA = Rs 6,840 per month

Monthly salary increases by Rs 900 (Rs 7,380 minus Rs 6,840)

Increase in annual salary: Rs. 900 x 12 = Rs. 10,800

Taking the minimum salary at Rs 56,900 then:

If DA is hiked to 41% = Rs 23,329/month

Current 38% DA = Rs 21,622/month

Salary increases by Rs 1,707 per month (Rs 23,329 minus Rs 21,622)

Annual salary hike Rs 1,707 X 12 = Rs 20,484

What is the Latest DA Hike Percentage?

According to the percentage increase in the 12 monthly average of the All-India Consumer Price Index for the period ending June 2022, the Union Cabinet had approved the release of an additional installment of Dearness Allowance and Dearness Relief @ 4 percent to Central Government employees and pensioners due from July 1, 2022. With effect from July 1, 2022, both Central Government employees and pensioners are now eligible for increased amounts of Dearness Allowance and Dearness Relief, respectively.

According to estimates, the additional financial effects of this increase in Dearness Allowance for Central Government Employees will total Rs. 6,591.36 billion each year and Rs. 4,394.24 billion in the fiscal year 2022–2023 (i.e., for a period of 8 months from July 2022 to February 2023).

According to estimates, this rise in Dearness Relief for Pensioners will have significant financial effects totaling Rs. 6,261.20 billion annually and Rs. 4,174.12 billion in the fiscal year 2022–2023 (i.e. for a period of 8 months from July, 2022 to February, 2023). The combined burden of Dearness Allowance and Dearness Relief on the exchequer would be in the range of Rs.12,852.56 billion each year, and Rs.8,568.36 billion in the fiscal year 2022–2023 (i.e. for a period of 8 months from July, 2022 to February, 2023).