7th Pay Commission: Modi Govt May Announce DA Hike Before Holi, Here's How Much Salary Will Increase

New Delhi: 7th Pay Commission DA Hike update --The Narendra Modi government might give festive bonanza to the central government employees this Holi. As per media reports, the central government might announce DA Hike for employees during Holi. When the Labor Ministry releases the All India Consumer Price Index (AICPI) numbers on February 28, there may be a hint about the upcoming Dearness Allowance (DA) increase. 

For central staff, just the AICPI index is used to determine their daily stipend. The country as a whole and 88 centres were included in the index. The AICPI is released on the final working day of each month.

The December 2022 AICPI statistics were 132.3. 

According to media reports, the dearness allowance would rise by 3% if the future index (for January 2022) increases. As a result, from its current 38 percent, the DA will increase to 41 percent.

How much salary will increase if government announces 3% hike in DA taking it to 41 percent

Taking Minimum Basic salary at Rs 18,000

If DA is hiked to 41% = Rs 7,380/month

Current 38% DA = Rs 6,840/month

Salary increases by Rs 900 per month (Rs Rs 7,380 minus Rs 6,840)

Annual salary hike Rs 900 X 12 = Rs 10,800

Taking Minimum Basic salary at Rs 56,900

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

7th Pay Commission: DA hiked by 4 percent to 38 percent

The Union Cabinet had on 28 September 2022, approved the release of additional instalment of Dearness Allowance and Dearness Relief @ 4 percent to Central Government employees and pensioners due from 01.07.2022 based on the percentage increase in 12 monthly average of All India Consumer Price Index for the period ending June, 2022. The Central Government employees and pensioners had become entitled to higher amount of Dearness Allowance and Dearness Relief respectively, w.e.f. 01.07.2022.

The additional financial implications on account of this increase of Dearness Allowance to Central Government employees are estimated at Rs.6,591.36 crore per annum; and Rs.4,394.24 crore in the financial year 2022-23 (i.e. for a period of 8 months from July, 2022 to February, 2023).

The additional financial implications on account of this increase of Dearness Relief to pensioners are estimated at Rs.6,261.20 crore per annum; and Rs.4,174.12 crore in the financial year 2022-23 (i.e. for a period of 8 months from July, 2022 to February, 2023).

The combined impart on the exchequer on account of both Dearness Allowance and Dearness Relief would be of the order of Rs.12,852.56 crore per annum; and Rs.8,568.36 crore in the financial year 2022-23 (i.e. for a period of 8 months from July, 2022 to February, 2023).