7th Pay Commission: July will bring big good news for Central government employees as the dearness allowance (DA) will be hiked by 3 to 4 per cent, according to the reliable sources. The Government is considering to increase the DA from 45 per cent to 46 per cent. This would automatically lead to increase in the employees’ salaries. It is expected that the government would take the final decision and would declare it very soon.

Recently, Employment Index of Consumer Price Index (EICPI) for April have attracted the attention of various media outlets. It was estimated that the employees may get 3 per cent DA hike slated for July.

It is noted that if the calculations hold true, a 3 perc ent increase in dearness allowance would hike it to 45 per cent. However, if the figures become more explicit, the increment might scale up to 4 per cent, consequently reaching 46 per cent. This favorable adjustment in DA will benefit approximately 48 lakh employees and 69 lakh pensioners.

7th Pay Commission: AICPI figures

Looking at the data from January, there was a nominal 0.5 percent hike in the AICPI figure. However, in February, it experienced a slight decline of 0.1 per cent, settling at 132.7. March witnessed a positive upswing of 0.6 points, reaching 133.3. In April, the AICPI climbed by 0.9 percent, amounting to 134.2.

The future trajectory of the dearness allowance hinges on the forthcoming ICPI figures for May and June. If they display promising trends, there exists a possibility of witnessing a 3 to 4 percent surge in the dearness allowance. Consequently, with a 4 percent increase, the DA will ascend to 46 percent. To illustrate, consider an employee with a monthly salary of Rs 18,000. With a 42 percent DA, the dearness allowance stands at Rs 7,560. However, with a 46 percent DA, it reaches Rs 8,280. Hence, this adjustment would result in a monthly salary increase of Rs 720.