7th Pay Commission: Know How Much Salary Hike Central Government Employees Will Get in July

Here's a big update for those of you who have been waiting for an increment. According to recent reports, central government employees are expected to receive a salary increase in July when their Dearness Allowance is increased. The central government is rumored to be planning a hike in DA and DR.

Government employees should be aware that the Dearness Allowance (DA) is normally updated by the Centre every January and July, based on the All-India Consumer Price Index (AICPI). Under the 7th Pay Commission, the government announced a rise in Dearness Allowance and Dearness Relief in January of this year. The DA and DR for employees and retirees were increased by 3% this time.

Dearness Allowance to be Hiked in July

The dearness allowance, on the other hand, is likely to rise by 4% in July if the AICPI continues over 126 in April, May, and June. In January and February, the AICPI was 125.1 and 125, respectively, while in March, it was 126. If the AICPI stays at that level, government employees can expect a 4% increase in their DA.

Employees in the central government currently receive a DA of 34% on their basic wage. They will receive a 38% dearness allowance on their basic pay if the DA of 4% is increased.

How Much Salary Would You Get After DA Hike?

If a government employee's basic pay is Rs 18,000, he or she will receive a DA of Rs 6,120 at a rate of 31%. They will receive Rs 6,840 in DA if the latest DA increment of 4% is enforced. This means that their income will increase by Rs 720 as a result of the new DA hike.

The Centre raises DA twice a year, in January and July, to keep inflation at bay. Because retail inflation is at an all-time high, the possibilities of a dearness allowance increase are huge. Furthermore, CPI-based inflation hit an eight-year high of 7.79 percent in April.