7th Pay Commission: Central government employees are set to receive some welcome news in the coming month, with the government considering a salary increase.

According to recent reports, the government is likely to announce a hike in dearness allowance (DA) in September. The latest data, based on the AICPI index for July 2023, suggests that the government may increase DA by 4 percent.

This expected increase of 4 per cent will boost the current DA rate of 42 percent, which has been in effect since January 2023, to a total of 46 percent.

The decision on this matter is expected to be taken during an upcoming cabinet meeting in September. Although the AICPI index data indicates a total DA of 46.24 percent by June 2023, the government typically rounds down the decimals, resulting in a final figure of 46 percent.

It’s important to note that no official announcement regarding this increase has been made as of now. However, approval for the DA hike is expected to come from the Central Government soon.

For those following the 7th Pay Commission, here’s an example of how the expected increase might impact salaries:

Basic Salary: Rs 18,000 per month

New Dearness Allowance: Rs 8,280 per month (46 per cent)

Current DA: Rs 7,560 per month (42 per cent)

Increase: Rs 720 per month

Annual Salary Increase: Rs 8,640

For employees with a basic salary of Rs 56,900, the impact on their monthly and annual salaries can be similarly calculated, depending on the finalised increase.